WILL RACING RECLAIM ITS SEAT ON THE THRONE? A NEW TAX REGULATION AND PARI-MUTUEL BETTING

Note Written by: Keziah K. Colleton

Racetracks now have the ability to generate more pari-mutuel handle, horseplayers can keep more of their winnings, and the government can collect more tax revenue following years of lobbying by the National Thoroughbred Racing Association (NTRA) and the recent passage of new legislation. On September 25, 2017, the Internal Revenue Service (IRS) and United States Department of the Treasury announced its formal adoption of a new regulation addressing the reporting and withholding of pari-mutuel proceeds for tax purposes. This Note posits that this regulation adopted by the IRS and Department of the Treasury will have a positive, multi-level impact on the horseracing industry. In addition, it will analyze future implications of this regulation, explore the NTRA’s claims, and the ways in which the regulation could breathe life back into the thoroughbred racing industry, potentially returning the industry to its former glory as the Sport of Kings.

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