W2G Horse Racing vs Bingo/Slot/Keno

[Sly7449]

Greetings,

I have noticed where a winner has a Tax liabilty for Horse Racing is limited to 300 times the cost of the wager. For each $1.00 wagered any Win over $300 is taxable.

The same win rate does not apply to Bingo, Slots and Keno. Bingo taxable limit is $1200 and Keno is $1500.

I wonder why all are not equal.

Worst yet, if you Box 4 horses in a $1 Tri, the cost of the ticket is $24.00 yet if one of your 24 combinations win, you are still in the Taxable category for that one of 24 combinations.

This taxable rule has been around since I first got into punting which was back in the 70's.

I cringe at the fact that any person can so happen to pass by a slot machine and just drop a quarter or say $1.00 (without buying all the tools necessary for handicapping the horses) and boom! hit for a Grand, and go off smiling without any Tax Due. UNFAIR.

Is there any legislation pending to update this rule?

Thanks

L8R

Sly

[BillW]

I think you've misinterpreted the tax law. You are liable to pay tax on any income. The limits you reference are for reporting the win to the IRS on the spot i.e. a "signer".

Bill