The Horseplayers’ Coalition is the NTRA’s legislative voice for horse racing’s customers. The Coalition seeks legislative solutions to Federal tax issues that impact horseplayers and pari-mutuel racetracks, and provides grassroots support for NTRA’s lobbying efforts on Capitol Hill. The Coalition’s Advisory Panel is tasked with helping the NTRA Legislative team identify, establish and prioritize player-friendly legislation.
In 2015, the NTRA made significant progress in its ongoing effort to secure a clarification from the IRS regarding its definition of the “cost of a wager.” This seemingly arcane point is critical to determining whether a winning horse player is subject to IRS reporting and withholding.
Horseplayers wagering on pari-mutuel races currently are subject to reporting of winnings over $600 or more and automatic Federal tax withholding on pari-mutual winnings of $5,000 or more at odds of at least 300-1. The “cost of a wager,” now defined simply as the single winning bet the player makes (versus the total investment made), is at the center of these calculations, which frequently trigger reporting and/or withholding for horseplayers. Withholding reduces players’ liquidity during handicapping and adversely impact pari-mutual handle and purses. Withholding levels for pari-mutual winnings have been pegged at $5,000 since 1992. Reporting levels have not changed since the mid-1970s.
Visit the Legislative homepage for updates on the NTRA’s work to clarify pari-mutuel withholding and reporting.
Annual membership in the Horseplayers’ Coalition is $25. Horseplayers can also join when signing up for the NTRA National Horseplayers Championship Tour (NHC Tour).
If you are already a member of the Horseplayers’ Coalition, thank you for your support. Please send us your comments and question – we are always eager to hear from you.
Supporters of the NTRA Legislative Action Campaign programs are eligible to receive preferred pricing from NTRA Advantage, offering products and services from companies like John Deere, Sherwin-Williams, Office Depot/OfficeMax and more.