New tax rules to boost betting on racing

US race betting industry projects betting handle to go up by 10 percent due to new taxation rules on punters’ winnings.

 

The US Treasury Department and the Internal Revenue Service (IRS) announced last week new rules for pari-mutuel proceeds and the race betting industry have started celebrating. According to the National Thoroughbred Racing Association (NTRA), new regime could boost annual pari-mutuel handle by up to 10 percent, or a yearly extra of US$1 billion.

The IRS will take into account a bettor’s entire investment in a single pari-mutuel pool instead of only considering the amount wagered on the correct result, when determining the amount to be reported or withheld for tax purposes, CalvinAyre reports.

New rules declare that punters that place multiple wagers on one pool will now have the full value of their stake applied to their winning wagers for tax purposes. Regarding on-site betting, the regime states that every wager placed in a single pool must be made on the same tote ticket and pool bets placed through advance deposit wagering sites will also have the same tax benefits.

Racing operators have up to 45 days starting last Wednesday to adjust their systems but many of them are expected to do so in advance of that date.

Ted Gay, Churchill Downs Inc’s ADW site TwinSpires president, said that the new tax rules are “a very big win” for pari-mutuel racing and stated: “The reduction of wagering dollars withheld from circulation means more money for our players, which means more handle for the industry, our partner tracks, and horsemen. These changes will improve the economics of the sport at every level.”…

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Source: EEGaming.