[sshz]

Much has already been written about horse racing and the "double taxation" practiced by our state and Federal governments. Andy Byer and Steve Christ, two of the most notable names in horse handicapping, seem to write about the subject on a regular basis. First some details, then some comments.

As most of you might or might not know, any sizeable winning bet is taxed twice by the authorities. First, a rather large % is taken out of the betting pool (win/place/show/exacta/trifecta/superfecta/pick 3,4,5/etc.) The percentages vary by type of bet and the state. Win, place, show bets typically have the least taken out while multi race bets like doubles and Pick 3,4,6's have the highest % taken out. On the low end it's typically around 16-18% while up to 26% on the multi race bets. Some of this money goes to race purses and track operations while the rest goes towards taxes. So, before the race even finishes, a substantial amount of the betting pool has been removed.

Now the race is run and you have a long-shot and you're looking at a big payoff. Not so fast bucky............
The federal government is waiting for you when you go to cash your ticket. If your winnings minus your wager are over $5000 and at least 300-1 times that wager, 28% of your profit will be withheld immediately. Plus, you'll be handed a Form W2-G for good measure. You'll just get the W2-G if it's 300-1 and $600 winnings.

Of course you are expected to declare ALL winnings to the taxman at the end of the year and offset them against your loses as an itemized deduction. If you don't itemimize, tough luck. Most people, if not all people, do not declare there week to week winnings of smaller amounts. The IRS does not seem to care about those.

So, here's my point. HOW THE HELL ARE YOU SUPPOSED TO MAKE A PROFIT???

[StackinGreen]

It's crazy. Why can't they come to an agreement that the Feds get a portion of the State tax amount, which is well beyond what it should be anyway --- and do away with the big winner phenomenon of double taxing. It's typical with the IRS and the government. They are there with you only when you win, not when you lose. They even make it exceedingly difficult to claim losses if you do itemize.

They should guarantee a cut to the Feds and if you win, you win and get to keep it. It's like hitting a scratch lotto ticket for $100,000 and walking away with $62k. You are left scratching your head and saying, wait, I thought it said the prize was $100k???

[JBEX]

for starters as I've stated on here before I do not play and just cap.. that being said with dime supers and 50 cent triples that should help you stay out of trouble.. As nice as it is to hit those mega payoffs it brings you in contact with the IRS which of course is not good. People are too enamored with making these kind of hits and would be better off hitting nice payoffs more often and staying under the cap(rather than tax jobs). If you shoot for smaller stuff you'll hit more often plain and simple.. Other thing would be just play win and place. Lower vig and your hit rate increases. If you're profitable doing that than you pay no taxes..It is generally thought I believe that a really skilled player might get 5-10 per cent return on their money over the long haul.. If that's the case why chase pie in the sky payoffs when in the end your best result would be grinding out a profit.. makes no sense to me.. understand the allure of the big payoff but in the end not worth it IMO

[sshz]

There has been some movement lately regarding the tax situation in horse racing but nothing has changed as of yet. After football, it's my favorite form of gambling but many of my friends have given up on it and it's getting very lonely.........

[StackinGreen]

There has been some movement lately regarding the tax situation in horse racing but nothing has changed as of yet. After football, it's my favorite form of gambling but many of my friends have given up on it and it's getting very lonely.........

I feel the exact same way sshz. Great game, love betting horses for big race days and NFL is tops. They can and should entirely reform horses and you'd get a lot of interest. Whats better than that quick excitement at the wire? Barely anything.

[JBEX]

hopefully they can make some changes happen with the tax code..be a big shot in the arm for the game..love sports betting myself but nothing quite like the rush of the ponies..a few bad days or weeks for that matter can be turned around in a hurry with a nice hit or two

[Madison]

Back in the day (80's) many a person made a decent wage cashing tickets and claiming the loses.made for a nice pay day come Feb/Mar Course the smallest bet was $1 and they did have to deal with the IRS.