Wednesday, June 18, 2014


Hello My Loyal Minions,

I'm not sure you know this (unless you're throwing around big paper at The Office on a regular basis like your's truly…) but the way Horse Players are taxed on their winning wagers, especially exotic wagers does not take into account the total amount wagered only that individual winning wager, so there is a disproportionate tax burden placed on the bettor. 

Let me break it down for you: I win a Pick-4 on an individual ticket that costs $12 and pays out $800.  I get taxed using the outdated concept that I just wandered into the local betting parlor, pulled a Rain Man and just bet a single .50 Pick-4 2x2x2x3 ticket out of the air, yes it is possible but most likely not what really happened.

What most likely happened is that I had a multi-ticket plan for success where I wagered somewhere in the $200-$300 range (for a 37% R.O.I) on the P4 on multiple combinations and tickets and this was just the one that hit.  

So instead of getting fairly taxed on the total investment I made of $300 the IRS hammers me for the $12 wager, not cool. It is not only unfair taxation, it also has a broad sweeping ripple effect on the entire industry, taking money directly out of the bettors pocket and leaving them less dollars to wager and pour back into the pipeline to sustain the industry. 

(Please see the post "A Polite Response to Mr. Andrew Beyer" for more details on this)

Most serious Handicappers don't even calculate profit on a wager by wager basis, it is based on total wagered for the day, (or month or year whatever your reporting period is) because that gives you a more accurate picture of your actual profit and R.O.I.

(Dorked-out math example for the layman) 
The way the Man holds you down: $12 wager-$800 winnings = "taxable profit"of $788

How the Petition will change that (a.k.a how it should be calculated:)
$300 in total wagers - $800 winnings = actual taxable profit of $500 which means getting taxed on $288 LESS than they take currently. 

That is a BIG difference in taxes, in actual dollars taken out of circulation and not wagered back into the pools, and to the serious bettor a MAJOR detriment to your yearly bankroll.

So please sign the Petition for the betterment of Horse Racing as a whole, not just your's truly, but more money in my pocket means more left to buy my homies drinks later…

Thank you for signing and please feel free to pass it on and share with everyone you know.
Here is what DRF's C.E.O had to say about it:

That's All I got.


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