Will go into place beginning September 28
The New York Racing Association, Inc. (NYRA) has quickly moved to be in compliance with updated tax regulations adopted Monday by the U.S. Treasury Department and the Internal Revenue Service (IRS). Beginning Thursday, September 28, NYRA Bets and NYRA tracks will enact these updated reporting and withholding rules for the benefit of horseplayers.
“This is a tremendously positive change for the industry and one that NYRA has always supported,” said David O’Rourke, NYRA Chief Revenue Officer. “That’s why we have worked aggressively to expedite compliance so that horseplayers wagering through NYRA Bets or at a NYRA track can see these positive changes as soon as possible.”
Under these new regulations, the amount that is reported or withheld for tax purposes is determined by a bettor’s total investment into a pari-mutuel pool. Previously, the amount reported or withheld for tax purposes was determined only by the winning base wager amount.
While the reporting thresholds remain unchanged, the frequency with which reporting and withholding requirements will be met under these new regulations will be greatly diminished.
For example, a winning $2 Pick 6 ticket that paid more than $5,000 would have had taxes withheld, even if the total investment was $100. Now, a $100 Pick 6 wager will only have taxes withheld if the winning payout is over $30,000.
The new rules were adopted by the U.S. Treasury Department and IRS on Monday evening and became official on Wednesday with their publication in the Federal Register. Following a 45-day implementation period, the rules will take full effect no later than November 14.