To amend the Internal Revenue Code of 1986 to provide changes in application of wagering taxes to charitable organizations.

Amends the Internal Revenue Code to exempt from the occupational excise tax on wagering any tax-exempt charitable organization and any person engaged in receiving wagers only on behalf of such organization, if the only wagers accepted by the organization (and the person) are authorized under the law of the State in which accepted.

Provides for taxing a percentage of wagering winnings in excess of charitable expenditures.