Thoroughbred Racing Industry: Federal Policy Priorities

The National Thoroughbred Racing Association (NTRA) is a broad-based coalition of more than 100 horse racing organizations and thousands of individual stakeholders consisting of horseplayers, racetrack operators, owners, breeders, trainers, and affiliated equine associations. The United States Thoroughbred racing industry is responsible for nearly a half-million jobs, including owners, breeders, trainers, and other horsemen, and has an annual economic impact of $36 billion nationally.

Tax: Restoring the Wagering Loss Tax Deduction to 100%

  • Last summer, the One Big Beautiful Bill Act changed the amount of wagering losses a gambler could deduct from their taxes from 100% to 90%. This change wasn’t made to punish gamblers, but rather to address Senate budget rules procedures.
  • This could lead to a situation where gamblers are paying taxes on income they did not actually receive. For example, a bettor who won $100,000 and lost $100,000 would, under the 90% cap, face a “phantom income” of $10,000; income that only exists on paper and not in cash or bank accounts.
  • This change, which begins in 2027, would also result in a loss of income at racetracks of about 5-8%. This means fewer jobs and lower purses, which would damage the racing ecosystem going forward.

Immigration: H-2B and Comprehensive Reform

  • The horse racing industry relies heavily on the H-2B visa guestworker program to provide access to a temporary, seasonal workforce when domestic workers are unavailable. The Congressional cap of 66,000 H-2B visas per fiscal year often falls short of meeting demand, creating seasonal labor shortages that disrupt operations. Year-round labor needs are not well-served by current H-2B rules or seasonal caps.
  • The H-2B visa program, akin to broader U.S. immigration policy, requires significant reform to better serve the needs of workers and employers. The NTRA supports comprehensive immigration reform and actively participates in the H-2B Workforce Coalition to improve the H-2B visa program.

Farm Bill/Appropriations: 

  • Equine health and safety policy administered by the USDA APHIS receives less than $5 million annually and is funded from the same account used for sheep and goats. Put simply, the $37 billion thoroughbred industry receives less safety and health funding than sheep and goats. We ask that equine health receive a separate APHIS budget line in the fiscal year 2027 USDA budget.
  • Additionally, NTRA supports the creation of an Equine Center for Excellence at the Department of Agriculture to enhance equine health, safety, and disease management.

HISA:  Equine Health and Safety 

  • The Horseracing Integrity and Safety Authority (HISA) was established when the bipartisan Horseracing Integrity and Safety Act was signed into federal law in 2020. HISA was a monumental step forward for the national sport of thoroughbred racing, as it established a national, uniform set of integrity and safety rules applied consistently to all Thoroughbred racing participants and racetrack facilities.
  • HISA’s Racetrack Safety program went into effect in July 2022 and HISA’s Anti-Doping and Medication Control Program took effect in May 2023. In 2024, Fatalities at HISA-regulated tracks were below one raceday fatality for 1,000 starts, at a rate of 0.9 fatalities per 1,000 starts.
  • For tracks not regulated by HISA, the raceday equine fatality rate was almost double that number and showed a slight increase from 2023 figures.
  • Despite HISA’s implementation in most racing states, there are ongoing attempts to hinder its progress. NTRA opposes all efforts to repeal HISA or limit the Federal Trade Commission’s duties related to overseeing HISA.

Imports/Exports

  • The US Thoroughbred racing industry is truly global so ensuring the uninterrupted importation of horses for races and breeding is paramount. Currently, horses imported temporarily are not subject to tariffs. Horses coming in permanently, however, are subject to tariffs, slowing economic growth for the industry.
  • NTRA serves as a resource to members navigating challenges with importing and exporting horses for the sport, including working with USDA on testing and quarantine compliance.