Does The IRS Need To Know ?

We would like to think that regular readers of the Daily Racing Blog are by now somewhat familiar with the basics of wagering. But for those inquiring minds that would like to delve a bit deeper, we give you these FAQ’s.

How Are The Odds Determined? The track handicapper sets the Morning Line, which are the odds he believes the horses will be at Post Time. As money is wagered, the odds change continuously until Post Time, and are determined by the amount of money wagered on each horse.

Why Do Odds Fluctuate After The Race Starts? Wagering at all NYRA tracks closes when the Starting Gate opens. Final odds cannot be posted until the race is in progress. There is a slight delay due to the high volume of last-minute wagering at simulcast sites across the nation as final odds are calculated. No wagering site has the capability to accept bets after the start of any NYRA race.

How Do I Find Out If I Won? Check the tote board and television monitors after the race becomes official. The amount you Win depends on how much you wager, the type of bet you make, and the horse’s odds.

What Happens If There Is A Late Scratch? This depends on what type of wager it is. If a horse is scratched after wagering is closed, refunds will be given on all Win, Place, Show, Exacta, Quinella, Trifecta, and Superfecta wagers.

What About Daily Double And Pick Three Scratches? If there is a scratch in the first leg of the Daily Double, the bettor receives a refund; a scratch in the second leg results in a consolation payoff combining the Winner of the first leg. In the event of a late scratch before the first leg of the Pick Three, the bettor receives a refund. In the event of a late scratch after the running of the first leg, a consolation payoff is paid to bettors with Winners in the other two legs.

And Pick Four, Pick Five, And Pick Six, scratches? For Pick Four, Pick Five, and Pick Six wagers, in the event of a late scratch, the bettor receives the Post Time favorite. There are no refunds or alternate selections.

When Does The Race Become Official? Be sure to hold all tickets until results are made Official, as there could be changes in the order of finish due to a disqualification. As soon as a race has been deemed Official it will go up on the tote board as well be proclaimed official by the track announcer.

Do I Have To Report My Winnings To The IRS? The Internal Revenue Service requires reporting of payouts on wagers or group of identical wagers that exceed odds of 300 to 1 and pay in excess of $600. IRS regulations also require automatic 24% withholding on payouts that exceed $5,000.

Effective 9/27/17 new IRS regulations: When betting and receiving paper tickets, the 300-1 threshold will be calculated based on the total amount bet on a single physical ticket in a single track/day/race/pool.  When betting with a NYRA Bets Account or NYRA Cash Card, the 300-1 threshold will be calculated based on the total net amount bet through a single electronic account on a single track/day/race/pool.

If you are asking IRS related questions, congratulations, you must have had a good hit. Keep looking for Value.

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