A bill was introduced into the U.S. House of Representatives Tuesday that would eliminate the automatic 25 percent federal withholding on pari-mutuel winnings of $5,000 or more for bets that carry odds of 300-1 or higher.
The Pari-Mutuel Conformity and Equality Act of 2008 (H.R. 6631) is sponsored by Rep. Charles W. Boustany Jr., R-La.
In a news release from the National Thoroughbred Racing Association, Peggy Hendershot, its senior vice president of legislative affairs, said, “The negative impact of withholding is multifaceted. For the betting public, it 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. Our industry and our fans applaud Congressman Boustany for introducing this important legislation.”
The NTRA is a coalition of horse racing interests consisting of leading thoroughbred racetracks, owners, breeders, trainers and affiliated horse racing associations that is charged with increasing the popularity of horse racing and improving economic conditions for industry participants. It has offices in New York and Lexington, Ky.