The Horseplayers’ Coalition is the NTRA’s legislative voice for horse racing’s customers. The Coalition seeks legislative and regulatory 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 September 2017, the U.S. Treasury Department and the Internal Revenue Service (IRS) announced that they would formally adopt modernized regulations regarding the withholding and reporting of pari-mutuel proceeds. The NTRA had long pressed for these updated regulations that will allow horseplayers to keep more of their winnings, thereby increasing the amount wagered on U.S. pari-mutuel racing by as much as 10 percent annually, or upwards of $1 billion, according to independent estimates.
Under the new regulations, the IRS will consider the inclusion of a bettor’s entire investment in a single pari-mutuel pool when determining the amount reported or withheld for tax purposes, as opposed to only the amount wagered on the correct result.
Horseplayers wagering on pari-mutuel races were 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,” had been defined simply as the single winning bet the player makes (versus the total investment made), was at the center of these calculations, which frequently triggered 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.
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.