Saturday, September 30, 2017

Horse Racing Tax Rules Updated by US Treasury & IRS

Horse Racing Wins As US Treasury & IRS Issue Updated Tax Rules

OffTrackBetting.com - The U.S. Treasury Department and the Internal Revenue Service (IRS) today announced that they will formally adopt modernized regulations regarding the withholding and reporting of pari-mutuel proceeds. The National Thoroughbred Racing Association (NTRA) has long pressed for these updated regulations that will allow horseplayers to keep more of their winnings, thereby increasing the amount wagered on U.S. pari-mutuel racing by as much as 10 percent annually, or upwards of $1 billion, according to independent estimates.

The new rules were posted late Monday afternoon as a Public Inspection Document. They are scheduled to be officially published in Wednesday's edition of the Federal Register and will go into full effect by no later than Nov. 14, giving racing associations, totalisator companies, and advance deposit wagering (ADW) operators up to 45 days to implement these important changes; however, some may elect to start as soon as Thursday.

View new rule under section 3402(q) of the IRS Code

"These landmark U.S. Treasury regulations will have an enormously positive impact on horseplayers, the racing industry, and the federal government," said NTRA President & CEO Alex Waldrop. "I am extremely proud of the NTRA's legislative team for spearheading this effort, which will prove to be among the most meaningful regulatory advances made by our industry in decades. The results of this much-needed measure will be horseplayers keeping more of their winnings, racetracks generating more pari-mutuel handle, and government collecting additional tax revenue. This is a sure bet where everyone wins!"

Added Waldrop: "This day would never have come without the persistence of Thoroughbred racing's friends in Congress, especially Rep. John Yarmuth of Kentucky, Rep. Pat Meehan of Pennsylvania, Senate Majority Leader Mitch McConnell and our many bipartisan supporters on Capitol Hill. We also are indebted to the industry stakeholders and thousands of customers of Thoroughbred racing who signed our petition or submitted public comments in favor of these changes."

Under the new regulations, the IRS will consider the inclusion of a bettor's entire investment in a single pari-mutuel pool when determining the amount reported or withheld for tax purposes, as opposed to only the amount wagered on the correct result.

For example, the amount wagered by a Pick Six player who hits with one of 140 combinations on a $1-minimum wager now will be $140, which is the total amount bet into the Pick Six pool. This more accurate calculation will remove the significant reporting and withholding obligations on horseplayers and the unnecessary paperwork for the IRS that was a result of the prior rule that used only the $1 bet on the single winning combination as the amount wagered.

Another way to look at it - 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.

"This is a major victory for all pari-mutuel wagering customers," said Judy Wagner, the Horseplayers' Representative on the NTRA Board of Directors and winner of the 2001 National Horseplayers Championship (NHC). "It would not have occurred without the leadership of the NTRA and the support of thousands of horseplayers who actively participated in the process to modernize these regulations."

The amended regulations, advocated by the NTRA and its legislative team, define the "amount of the 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 totalisator ticket if the wager is placed onsite. The modernized regulations will have the same positive results for ADW customers and will not impact how those wagers are currently made.

Watch NTRA Press Conference

The NTRA has pushed for the modernization of pari-mutuel withholding and reporting rules for several years. As more and more pari-mutuel wagering was directed toward exotic wagering pools it become clear that the tax rules were becoming an increasing and unfair burden on horseplayers as those outdated rules significantly increased the incidence of winning tickets subject to withholding and reporting. These new rules are the product of all the work the NTRA, and other industry stakeholders, undertook with Congressional representatives and Treasury and IRS officials.

"This represents a great triumph by the entire NTRA legislative team, including the bipartisan Horse PAC, which played an instrumental role in the passage of these regulations that will benefit all segments of the industry," said Horse PAC chairman William S. (Bill) Farish. "We thank the hundreds of individual stakeholders who contribute to Horse PAC; they played a major role in today's victory."

Waldrop noted that the NTRA has been working behind the scenes since January with industry groups - including totalisator companies, ADWs, and racing organizations - to ensure a smooth implementation for customers.

"For the industry to fully realize the benefits of modernized regulations for pari-mutuel withholding and reporting it is essential that we deliver a seamless transition to our customers," he said. "We are optimistic that the industry will be fully prepared to institute these landmark changes by no later than November 14."

Friday, September 29, 2017

compare and contrast

https://secure.nassauotb.com/

HEADLINES

Sep 27, 2017

NYRA to enact new tax regulations beginning Thursday, September 28

by Pat McKenna

NYRA Bets, NYRA tracks to be in compliance

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.

ALL NEWS STAKES ADVANCE STAKES RECAP HEADLINES NOTES FEATURES

the bishop supports discriminates against

another church, the orthodox church,

while pope francis says to treat the orthodox church with respect. the
bishop in rovkville centre stands silently by while sndrew cuomo picks his easter Sunday over the other guy's easter Sunday

Burn a flag, kneel, bet at nassau otb evey day of the year that you wish, as simple as ny const art 1 sec 3
or sending the flu kie to buy a ny lotter ticket on any day of the year

LI diocese clarifies position against kneeling at high school events

Claude Solnik

(631) 913-4244

Long Island Business News

2150 Smithtown Ave.

Ronkonkoma, NY 11779-7348

Home > LI Confidential > Stop scratching on holidays

Stop scratching on holidays
Published: June 1, 2012

Off Track Betting in New York State has been racing into a crisis called shrinking revenue. Some people have spitballed a solution: Don’t close on holidays.
New York State Racing Law bars racing on Christmas, Easter and Palm Sunday, and the state has ruled OTBs can’t handle action on those days, even though they could easily broadcast races from out of state.
“You should be able to bet whenever you want,” said Jackson Leeds, a Nassau OTB employee who makes an occasional bet. He added some irrefutable logic: “How is the business going to make money if you’re not open to take people’s bets?”
Elias Tsekerides, president of the Federation of Hellenic Societies of Greater New York, said OTB is open on Greek Orthodox Easter and Palm Sunday.
“I don’t want discrimination,” Tsekerides said. “They close for the Catholics, but open for the Greek Orthodox? It’s either open for all or not open.”
OTB officials have said they lose millions by closing on Palm Sunday alone, with tracks such as Gulfstream, Santa Anita, Turf Paradise and Hawthorne running.
One option: OTBs could just stay open and face the consequences. New York City OTB did just that back in 2003. The handle was about $1.5 million – and OTB was fined $5,000.
Easy money.

Updated September 29, 2017 6:27 PM
By Bart Jones bart.jones@newsday.com

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Holy Trinity Diocesan High School in Hicksville in an undated photo. Photo Credit: Holy Trinity Diocesan High School

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The Diocese of Rockville Centre on Friday sought to clarify its position on prohibiting students and spectators from kneeling or otherwise protesting during the national anthem at sports games and other events at its three diocesan high schools.

Diocesan spokesman Sean Dolan, in a statement, repeated some of the explanations the diocese gave on Thursday — that the prohibition against kneeling during the anthem is long-standing school policy. He also addressed the issue of racism, citing Bishop John Barres’ words after violence broke out during an Aug. 12 white supremacist rally in Charlottesville, Virginia.

“The Diocese understands that some of the demonstrations during the National Anthem nationwide are intended to be a protest against racism and racial discrimination,” Dolan’s statement said. “Catholic teaching leaves no doubt on these issues. As Bishop Barres stated in his August 14th statement on the violence in Charlottesville, racism is a sin that also constitutes a fundamental heresy because it directly contradicts the Christian understanding of the Sacrament of Baptism.

“Although the Diocese does not agree that demonstrations are appropriate in its schools during the playing of the National Anthem — which recognizes the tremendous sacrifices of Americans of all races, ethnicities and religions — it notes that students who seek to challenge racism and racial discrimination are firmly in accord with Catholic teaching.”

On Thursday, Dolan said that at Barres’ instruction, the diocese had sent a directive to its three diocesan high schools this week, reminding them of the policy against protests during the anthem. Anyone violating the policy could face “serious disciplinary action,” the directive said.

EducationLI diocese: No kneeling by students, spectators for anthem

The three high schools — St. John the Baptist in West Islip, Holy Trinity in Hicksville and Bishop McGann-Mercy in Riverhead — are directly controlled by the diocese.

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On Friday, some of the other seven Catholic high schools on Long Island said they follow the same policy. They include Kellenberg Memorial High School in Uniondale and St. Dominic’s in Oyster Bay. Those schools are run either by religious orders, such as the Marianist brothers at Kellenberg, or by local parishes, such as St. Dominic’s.

The diocese’s directive issued on Thursday attracted widespread media coverage.

The kneeling issue has provoked a huge national debate, as scores of NFL players have “taken a knee” during the anthem before games to protest police killings of unarmed black people and other racial and social injustices. The latest actions were in response to President Donald Trump, who last week called for players who protest during the anthem to be “fired.”

Dolan’s Friday statement said the diocese had been asked whether the policy at its high schools had anything to do with the controversy over kneeling by NFL players during the anthem.“It does not — the policy is of long standing — and the Diocese and its schools take no position on that controversy or the subsequent national political debate over it,” the statement said.

1:30NewsLI HS football players stand for national anthem

He also said the diocese “is home to many people who are sensitive to racial injustice. In addition, many of our schools have children whose relatives were directly affected in some way by the tragic events of September 11, 2001.”

@Newsday

The terrorist attacks “forever changed who we are, and while not the only reason to stand for the national anthem it is a significant reason,” Dolan said. “We the People of God of the Diocese of Rockville Centre should continue to honor the sacrifices that countless people from Long Island have made during thi

nassau otb compliant on thursday or not.

09/27/2017 4:10PM

Plans to implement new withholding rules in a state of flux

By Matt Hegarty

LEXINGTON, Ky. – The number of betting outlets that will be compliant with voluntary tax revisions highly beneficial to horseplayers when the rules go into effect on Thursday remained in flux Wednesday as racing companies scrambled to get their bet-processing systems up to date.

On one side of the ledger was United Tote, one of the so-called “big three” bet-processing companies in the U.S., which on Wednesday affirmed that all of its clients would be compliant with the new tax revisions on the first day the rules are applied, a list that includes the giant account-wagering operator Twinspires.com and the popular racetrack Keeneland, which opens its meet next Friday. Sportech, another of the big three companies, has remained mum on its progress so far, frustrating some of its clients.

The identity of wagering outlets that will be compliant with the tax revisions on Thursday is important to horseplayers because of the significant tax advantages conferred by the new rules. Under the revisions, winning wagers that are placed through outlets that have updated their bet-processing systems to reflect the new tax rules will be subject to far higher thresholds that trigger automatic tax-reporting or withholding requirements. Those placed through outlets that are not yet compliant will potentially face much higher tax liability, especially on a long-odds score made in the exotic pools.

So far, only United Tote, which is owned by Churchill Downs Inc., has announced that all of its outlets will be compliant with the revisions on Thursday, although there did seem to be some wiggle room in that characterization. “At this point, we plan to have all United States-based customers of United Tote ready to go on Thursday morning,” Nate Simon, the president of the company, said on Wednesday morning.

Jim Goodman, the director of mutuels and simulcasts at Keeneland, said that the track received a software update from United Tote and was testing the system on Wednesday.

“We have every expectation that we should be fully compliant for the opening of the fall meet” on Oct. 7, Goodman said.

Elsewhere, customers of Sportech have been attempting to get updates about the bet-processing company’s progress, but have not yet received answers, according to track officials who are clients of the company. Sportech’s biggest clients are in Pennsylvania, New Jersey, and Connecticut, where it runs a string of off-track betting locations. Sportech also provides bet-processing services for all of the parimutuel outlets owned and operated by Penn National Gaming Inc., a large racing and casino company with facilities across North America.

“We don’t have any response from them as of right now,” Dennis Drazin, an advisor to the New Jersey Thoroughbred Horsemen’s Association, which conducts Thoroughbred racing at Monmouth Park and the Meadowlands, said on Wednesday afternoon. “This is something we’ve alerted them to for quite a while, something that has needed to be done ASAP. But right now we don’t know where they are at.”

Sportech, which has headquarters in the U.S. and in England, did not respond to requests for comment on Wednesday.

It is unclear where the third bet-processing company, AmTote, stood on Wednesday. On Tuesday, company officials said that they were working on their updates, but the company did not respond by early Wednesday afternoon to a request for more information. AmTote is owned by The Stronach Group, and its biggest clients are in California, where Santa Anita starts its fall meet on Friday. The New York Racing Association is also a client of AmTote.

The Stronach Group also owns and operates XpressBet, one of the three largest account-wagering operations in the country, and late in the day on Wednesday, the company announced that it, too, would be compliant with the new tax rules. (XpressBet provides wagering services to DRFBets, an account-wagering platform owned by Daily Racing Form, and that site will be tax compliant as well.) The other large account-wagering company, TVG, had not yet announced when it would be compliant, but on Tuesday, the company said it “hoped” to be compliant by Friday.

After an extensive lobbying effort led by the National Thoroughbred Racing Association to get the new rules adopted, the IRS and the Treasury Department announced on Monday that the new tax rules would be published in the official register on Wednesday, with the rules going into effect on Thursday. However, under language added at the behest of some racing companies, the rules gave bet-takers 45 days from the effective date to come into compliance, opening up a window in which some would offer their customers the new tax advantages and some would not, depending on how prepared the companies were prior to the Monday announcement. The compliance deadline is Nov. 14, roughly 10 days after the two-day Breeders’ Cup event.

Under the new rules, bettors will be able to count their entire investment in a pool for the purposes of determining whether thresholds for tax-reporting or automatic withholding are triggered. The previous rule used the base denomination of the wager to determine the triggers, so the change will result in far fewer winning wagers triggering the requirements, especially in exotic pools like the trifecta, superfecta, pick four, pick five, and pick six.

Racing lobbyists had told racing companies throughout the year that the rules would be put in place in 2017, but they were uncertain about the timing, given the general disarray within federal bureaucracies since the presidential transition.

“With the new regime in Washington, it was tough to determine what would happen and when it would happen,” said Hank Zeitlin, the head of the Thoroughbred Racing Associations, a racetrack trade group that regularly meets with bet-processing companies on technology issues. “As a result, the [bet-processing] companies are in various stages of compliance.”