IRS Proposes Major, Positive Changes for Horseplayers

7 Flares Filament.io 7 Flares ×

Special thanks to my friends and fellow horseplayers Judy Wagner and Chris Larmey , who were very instrumental in getting this done.  Judy and Chris traveled to Washington D. C. this past year to meet with U.S. Treasury officials to discuss the problems with the current pari-mutuel tax system and propose solutions for all of us players.  ~ Rich Nilsen

DEPARTMENT OF TREASURY AND IRS ISSUE PROPOSED REGS TO MODERNIZE PARI-MUTUEL WITHHOLDING AND REPORTING

Lexington, Ky. (December 29, 2016) – The Department of Treasury and Internal Revenue Service (IRS) today issued newly proposed regulations relating to withholding and reporting with respect to pari-mutuel winnings. The 31-page Treasury document, entitled“Withholding on Payments of Certain Gambling Winnings,” accomplishes the goals started and spearheaded by the NTRA more than two years ago. The effort to this point has included meetings between the NTRA and Treasury and IRS officials, visits to Washington by horseplayers, grass roots campaigns and direct contact involving thousands of industry stake holders, including bettors, as well as involvement by numerous Members of Congress, Governors and other elected officials.

Chris Larmey

The proposed regulations clarify ‘the amount of the wager’ to include the entire amount wagered into a specific pari-mutuel pool by an individual—not just the winning base unit as is the case today—so long as all wagers made into a specific pool by an individual are made on a single totalizator ticket if the wager is placed onsite. The proposed regulations would have the same positive results for Advance Deposit Wagering (ADW) customers and would not impact how those wagers are currently made.

The proposed regulations will positively impact a significant percentage of winning wagers, particularly those involving multi-horse or multi-race exotic wagers, and result in tens of millions of dollars in additional pari-mutuel churn.

The proposed regulations will undergo a 90-day comment period and it is conceivable that they could be in place prior to the 2017 Triple Crown. As was the case during a similar comment period in 2015 that attracted nearly 12,000 comments, the NTRA next week will establish a convenient and simple method for industry stakeholders to encourage enactment of the proposed regulations.

In its 31-page rulemaking document, the Treasury and IRS cited numerous specific examples provided by the NTRA as reasons for the need to modernize and also referred to the many comments it received from individuals in support of the proposed changes.

“This is a tremendous step forward in our ongoing efforts to modernize pari-mutuel regulations to accurately reflect today’s wagering environment,” NTRA President and CEO Alex Waldrop said. “The NTRA remains thankful to everyone who has engaged in this process, including numerous industry stake holders, horseplayers, Members of Congress, Governors and other elected officials, especially Congressmen John Yarmuth (D-KY) and Charles Boustany (R-LA), who led the congressional effort. A unified message has gotten us to this point and we encourage everyone to continue to work through the channels we will be establishing as we seek to push these proposed regulations across the goal line.”

The complete Treasury and IRS rulemaking document is posted on NTRA.com and can be accessed here.

Click here for reuse options!
Copyright 2016 AGameofSkill_com
7 Flares Twitter 0 Facebook 0 Google+ 1 LinkedIn 6 Email -- Filament.io 7 Flares ×

Sign up for the AGameofSkill.com e-news



About Editor

Rich Nilsen is a 12-time qualifier to the National Handicapping Championship (NHC), an event he has cashed in four times. He was the first player to finish in the top 10 twice. He recently won a $24,000 package into the 2016 Kentucky Derby Betting Championship. A former executive with Brisnet.com, Rich is also a graduate of the University of Louisville Equine Business Program. He is founder of AGameofSkill.com, a site devoted to horse racing education and promotion.

Speak Your Mind

*

More in Horse Racing Promotion | Marketing, Horse Racing Survival
Woodbine Racecourse Reports Big 2016 Season

“The clockwise turf racing concept added a fresh dimension to our racing program and attracted attention from across the world,”...

Close