The Tax Man Cometh

[Fairmount1]

Steven Crist\'s book Exotic Betting has been praised and criticized since its release now just a smidge under two decades ago.  That\'s hard to believe that much time has passed.  Nonetheless, Chapter 5 was titled \"The Tax Man Cometh.\"  

I would really like to know what a guy like Mike Maloney and others similarly situated have planned for 2026.  Now the Tax Man is Really coming. The amendment to the NDAA to correct the gambling loss deduction to 100% was not accepted.  If you aren\'t familiar, it is worth looking into this issue just to be familiar although doubtful it affects a lot of you on here but maybe a few of you?

Good news though, the breeders secured a big win with deductions in the Big Beautiful Bill.  100% bonus depreciation is permanent retroactive to Jan 20, 2025.  

All that said, I am genuinely curious how a professional player among the few out there moves ahead.  Maybe they continue ahead with the hope of it being corrected retroactively but that seems risky?  Maybe they say you can\'t overcome it and have to stop playing truly professionally and play under the radar moving ahead using cash only?  Wow, what a predicament and so curious what folks will do in that situation.

[Boscar Obarra]

Trade stocks, crypto , Kalshi.   Clearly the vermin in Washington  hate horseplayers.

[Socalman3]

No kidding about hating the horseplayers. How does it work on a football betting site? If you bet $200k on a football season and break even, the IRS says you won $20,000.  Is that right?  There are some bettors on these football sites in for a very rude surprise.  How are the football betting sites handling it?  I never thought in a million years that I would give up horseracing, but they are simply making it untenable. This is truly killing the golden goose when you think about all the others (and their tax dollars) that rely on horseracing not going down.  Casinos get to have you play in chips which basically nets all transactions and reduces the \"taxable\" base.  Why not move to chips instead of cashing betting?  Am I missing something here?  I would love nothing better than for somebody to tell me I am full of it and wrong here.

[Boscar Obarra]

I never  liked the tax treatment of winnings, and playing online you dont have much in the way of options.

 NOW?   GFY

[Socalman3]

Fairmount1 Wrote:
-------------------------------------------------------
> Steven Crist\'s book Exotic Betting has been
> praised and criticized since its release now just
> a smidge under two decades ago.  That\'s hard to
> believe that much time has passed.  Nonetheless,
> Chapter 5 was titled \"The Tax Man Cometh.\"  
>
> I would really like to know what a guy like Mike
> Maloney and others similarly situated have planned
> for 2026.  Now the Tax Man is Really coming. The
> amendment to the NDAA to correct the gambling loss
> deduction to 100% was not accepted.  If you aren\'t
> familiar, it is worth looking into this issue just
> to be familiar although doubtful it affects a lot
> of you on here but maybe a few of you?
>
> Good news though, the breeders secured a big win
> with deductions in the Big Beautiful Bill.  100%
> bonus depreciation is permanent retroactive to Jan
> 20, 2025.  
>
> All that said, I am genuinely curious how a
> professional player among the few out there moves
> ahead.  Maybe they continue ahead with the hope of
> it being corrected retroactively but that seems
> risky?  Maybe they say you can\'t overcome it and
> have to stop playing truly professionally and play
> under the radar moving ahead using cash only?
> Wow, what a predicament and so curious what folks
> will do in that situation.

Why do you think this only involves professional players? If your annual handle is $500,000 and you broke even or worse, according to the IRS, you had a taxable gain of $100,000.  You could in fact lose $100,000 on the year and then owe the IRS an extra $35k (literally adding insult to injury).  At least New York is not going to come after me for phantom \"wins\" although New Yorkers are already getting killed on the SALT Deduction limitations. It is clear, they go after their enemies by taking away their deductions - clearly horseracing is an enemy. They are taking away enough gambling losses deductions to insure everybody is a \"winner\".  It is that grotesque.

[Boscar Obarra]

Stop playing,  tell your local track, ADW ,  and state treasurer why.

 Enough people  do it , they count the millions  lost in takeout grift, maybe they do something .

  If not, then nothing will be done.   They already declared war on players by passing a ludicrous rule.    Fight back , or die in the field.