Revised pari-mutuel withholding and reporting rules in ‘final stage’

Posted: July 21, 2017

Positive changes in withholding for pari-mutuel winnings are included in a document outlining upcoming federal regulatory actions, the National Thoroughbred Racing Association said July 20.

The document, “Current Unified Agenda of Regulatory and Deregulatory Actions,” said the proposed rules for pari-mutuel wagering are in the final rule stage. The Internal Revenue Service and United States Department of Treasury included the regulations in the Federal Register Dec. 30, 2016.

The proposed regulations, developed with the NTRA’s guidance, clarify the amount of a wager to include the entire amount wagered into a specific pari-mutuel pool by an individual—not just the winning base unit as is the case today—so long as all wagers made into a specific pool by an individual are made on a single totalizator ticket if the wager is placed on site. The proposed regulations would have the same results for advance deposit wagering customers would not impact how those wagers are currently made.

“We are pleased to see this latest indication that the regulation continues to make its way toward final approval,” NTRA President and Chief Executive Officer Alex Waldrop said. “We take nothing for granted, though, and will continue to work closely with our allies in Washington, D.C., to get this important change completed. We urge Treasury and the IRS to act quickly so horseplayers, the racing industry, and the federal government can all start benefitting from these landmark rules.”

The proposed regulations will positively impact a significant percentage of winning wagers, particularly those involving multi-horse or multi-race exotic wagers, and result in tens of millions of dollars in additional pari-mutuel “churn.”

More information on the rules and the push for the changes is available here.

(Photo courtesy of U.S. Department of Treasury)