1 August 2008

Eliminating Withholding Tax In The US On Big Wins Is Just One Small Step Towards Industry Growth

From Richard Eng's column: A bill to eliminate the automatic 25 percent federal withholding tax on parimutuel winnings of $5,000 or more for bets that carry odds of 300-1 or higher has been introduced into the U.S. House of Representatives.
Called the "Parimutuel Conformity and Equality Act of 2008" (H.R. 6631), the bill was sponsored by Rep. Charles Boustany (R-La.).
Horseplayers should contact their local Congressman to support this measure.

The timing of this is pretty funny. On Pace Advantage we were having a discussion about the withholding tax. Here is what I wrote on July 27th:

"The money is basically taken out of the system. And any money taken out reduces churn.
The fact that most people (the overwhelming majority plus) lose money betting horses means that this rule is just unfair and has no place in the land of the free.

Maybe on hits of $15,000 or more, I can see it. That person might eek out a winning year when the dust clears."

The Bill was introduced on July 29th:

'Peggy Hendershot, senior vice president of legislative affairs for the NTRA, said the withholding provision “has meant a confiscatory and frequently unfair loss of available capital. That loss of reinvestment, or ‘churn,’ leads to a reduction in overall wagering that in turn means less revenue generated for state governments, racetracks, and purse money for horsemen.'

John Pricci at Racing Insider has a good article on eliminating the ridiculous withholding tax in the US. He says this would be a good first step, but infers that the only way to grow the game will be to reduce track takeouts across the board.

Note: In Canada we aren't subject to withholding tax, and horse race betting growth is non existent. We would be looking at escalating negative growth if we had to deal with it here right now. WEG has everything going for them, and they still suck at growing the game because of their insistence to have outrageous track takeouts.


If you haven't already, please join The Horseplayers Association of North America {HANA}:
We now have around 120 members to date. Not bad, but in order to have clout and be able to help either reduce track takeouts or increase rebates by fighting for open access for all ADWs, we need numbers.
Membership is free. And the only obligation we ask is to at least consider any proposals we have when it comes to avoiding or supporting certain tracks or even ADWs, and also sign online petitions if and when the time comes.
Of course, all members and non members suggestions and contributions are valued as well.
To sign up (FOR FREE), please go to our website :


On the right hand side you will see a BECOME A MEMBER link. Click it, then fill out and submit the form. When asked for "handle" that means "how much you bet yearly"

Thanks, we need your support.

Fort Erie: Nothing But Questions

Still no news on whether racing will happen at Fort Erie in 2009. Ajax Downs is apparently building a bull ring, so their future seems to be bright. Will Ajax Downs get Fort Erie's thoroughbred race dates for next year? Will the Ontario government have the balls/integrity to finally laugh off the proposed $300 million proposed project at Fort Erie? Will Nordic Gaming sell Fort Erie off to someone interested in growing horse racing before Fort Erie race track turns into a giant parking lot?

H/T to The Race Is Not Always To The Swift, for finding this funny, yet informative, yet still confusing video on how Dosages are determined:

Equidaily has some really great links today. Including a picture of Edgar Prado apparently help out Javier Castellano regain his broken reign during a Stake Race at Saratoga on Wednesday.

OLG execs sure make a lot of money. I always laugh whenever I hear the expression "non profit organization." They make sure they don't make a profit, because their workers are paid so well:)

OLG To Probe Lottery Winners Back To 1995

Store Owner Credits Luck for his 167 lottery wins totaling over $1.2 million
Reading the comment section, it seems two of the wins made up most of the total amount won.
From another article:
'Jackson claimed a total of $1,157,000 - most of it in a single February 2000 win worth $1,011,350, according to documents released Tuesday as part of a freedom of information request.

But it was wife Corrie who claimed the bulk of the wins - 127 separate prizes totalling $105,900. Wins in the names of the two children totalled about $15,000.

The family sold the retail outlet four years ago.

"We didn't have anything to hide, as far as I was concerned," Corrie Jackson said. "Whatever Barry won and the boys won and whatever I might have won, was all above board."'

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