This is an important distinction that has resulted in horseplayers keeping more of their money, racebooks seeing an increase in handle, and more financial support for trainers, animals, and purses.Ī news piece published on best explains how the change affects players:

Before, the IRS only counted the base bet amount when calculating its 300-1 reporting and withholding thresholds. The new horse betting tax rules now count the entire amount of money you bet into a single parimutuel pool as your original wagering amount for tax purposes. What New Horse Betting Tax Rules Mean for Gamblers $2) was considered the original stake, the entire bet amount will now be considered the original stake. However, the manner in which those thresholds are met changes under the new rules. That is, winnings of 300-1 that pay at least $600 must still be reported to the IRS and winnings of 300-1 that pay at least $5,000 are still subject to automatic withholding horse racing taxes. The previous reporting and automatic withholding regulations remain the same under current IRS horse racing betting rules. Both ADWs cheerfully alerted customers to the news and reported they were happy that customers get to keep more of their own money as a result. The impact on gamblers was immediate, with TwinSpires and Xpressbet sending out e-mails immediately following the change. In 2017, the IRS adopted a new rule in which all wagers placed into a single parimutuel pool and represented on a single ticket may be aggregated and treated as a single bet for withholding and reporting purposes. A new tax rule adopted by the IRS regarding its treatment of wagering activity continues to have positive impacts on US horse bettors and taxes on horse racing winnings.

Nj sports gambling taxes 300 to 1