Easy Way for Bettors to Contact the United States Treasury Department

The National Thoroughbred Racing Association (NTRA) has announced that a system has been established at https://www.ntra.com/comment for individuals to submit an e-mail comment directly to the United States Treasury Department in support of newly proposed regulations related to withholding and reporting of pari-mutuel winnings.

Washington DC The proposed regulations, which would replace outdated regulations adopted nearly 40 years ago, more accurately reflect today’s pari-mutuel wagering environment and will positively impact a significant percentage of winning wagers, particularly those involving multi-horse or multi-race exotic wagers. It is believed that the proposed changes will result in tens of millions of dollars in additional pari-mutuel wagering annually. If adopted, the new regulations will not only  promote greater compliance and more accurate reporting and withholding by taxpayers but also reduce burdensome and needless paperwork system-wide.

Efforts spearheaded by the NTRA on behalf of the industry over the past two and a half years came to fruition on December 30 when Treasury and the Internal Revenue Service (IRS) published proposed guidelines designed to modernize withholding and reporting regulations. The 31-page Treasury document, “Withholding on Payments of Certain Gambling Winnings,” clarifies the phrase “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.

In the NTRA’s official response to Treasury on behalf of the industry, submitted Wednesday, NTRA President and CEO Alex Waldrop thanked the Treasury and IRS for recognizing the need to modernize regulations related to the withholding and reporting of pari-mutuel winnings and noted that the newly proposed regulations sufficiently address the industry’s concerns. Waldrop asked the Treasury and IRS to enact the new regulations as quickly as possible following a 90-day comment period that concludes on March 30.

This will positively impact a significant percentage of winning wagers, particularly those involving multi-horse or multi-race exotic wagers.

“With horseracing’s all-important Triple Crown season fast approaching, the NTRA urges Treasury and the Service to adopt the proposed regulations as final regulations as soon as it is administratively feasible. Horseplayers, tracks and other industry stakeholders, including governments, are eager to begin reaping the benefits that will result from these updated withholding and reporting rules,” Waldrop said.

The public comment system at NTRA.com/comment provides each person with a clear, consistent message asking the Treasury to adopt the proposed regulations and urging prompt action.

“A unified message of support is critical as the industry urges Treasury and the IRS to finalize the proposed regulations,” Waldrop added. “We ask all who participate in the horse racing industry to submit a comment to Treasury and the IRS using the NTRA system so that we can send the message loud and clear that all of horse racing supports these changes.”

Congressmen Urge Modernization of Pari-Mutuel Tax Rules

YARMUTH, BOUSTANY PEN JOINT LETTER TO TREASURY URGING ACTION ON MODERNIZATION OF PARI-MUTUEL TAX RULES

LEXINGTON, Ky. (Wednesday, July 13, 2016) Two U.S. congressmen, Rep. John Yarmuth (D-KY) and  Rep. Charles Boustany (R-LA), have submitted a joint letter to the U.S. Department of Treasury Secretary Jacob Lew urging finalization of proposed rule changes regarding withholding and reporting of pari-mutuel winnings.  The letter to Treasury was submitted on July 12 and was posted today on the official Twitter account of Rep. Boustany (@Boustany).

In the text, Yarmuth and Boustany highlight the bipartisan support the new guideline enjoys, as well as recent congressional activity on the matter and the pari-mutuel wagering industry’s economic imWashington DC smallpact. The letter concludes: “As you are well aware, it has been more than a year since the proposed rule was first published and, as such, we strongly encourage you to act on this matter by finalizing the proposed rule.”

A PDF file of the complete letter can be accessed here.

The letter comes on the heels of language in a House Appropriations Committee Report issued last week that accompanied House passage of the 2017 Financial Services and General Government Appropriations bill. That report instructed the U.S. Treasury “to expedite final consideration of the guidance which would modernize the rules governing pari-mutuel wagering.”

A companion bill in the Senate containing identical “Guidelines for Pari-mutuel Winnings” has been passed out of committee and now awaits passage by the full Senate. Ratification of the Senate appropriations bill would not result in the proposed rule changes becoming law; the IRS and U.S. Treasury must approve changes to their regulations.

Recent actions by the House and Senate are the latest in a concerted, industry-wide effort to modernize regulations relating to pari-mutuel winnings. Updates proposed by the NTRA would clarify regulations by redefining the “amount of the wager” to include all of a bettor’s investment into a single pari-mutuel pool, and not simply the base amount of the winning combination. The effort has received support from Members of Congress as well as all segments of the horse racing industry, including customers, who last year submitted nearly 12,000 comments to the Treasury and IRS in support of the proposed change.