highnote
09-23-2011, 09:49 AM
Andy Beyer article makes the case that reduced takeout is a good thing.
http://www.drf.com/news/microbets-welcome-addition-sports-wagering-options
Though the microbets surely have some drawbacks, they offer one benefit that trumps any negative features. They shelter players from tax withholding by Internal Revenue Service. When a bettor wins $5,000 or more on an exotic wager paying odds of 300-1 or higher, the government extracts 25 percent of his payoff. (If a superfecta returns $5,000, the player walks away from the window with $3,750 and a tax form.) For many players – those who don’t itemize their tax returns and thus can’t claim losses to offset their reported wins – this is money they will never see again. Taking so much cash out of circulation reduces players’ betting capital and thus hurts the economy of the entire parimutuel industry.
Because the payoffs on 10-cent supers, 50-cent trifectas, etc. are much less likely to exceed the $5,000 threshold, players keep more money and continue betting with it.
WOW. Imagine that... lowering takeout keeps more money in circulation and helps the parimutuel economy. Who would have thought this to be possible. :rolleyes:
http://www.drf.com/news/microbets-welcome-addition-sports-wagering-options
Though the microbets surely have some drawbacks, they offer one benefit that trumps any negative features. They shelter players from tax withholding by Internal Revenue Service. When a bettor wins $5,000 or more on an exotic wager paying odds of 300-1 or higher, the government extracts 25 percent of his payoff. (If a superfecta returns $5,000, the player walks away from the window with $3,750 and a tax form.) For many players – those who don’t itemize their tax returns and thus can’t claim losses to offset their reported wins – this is money they will never see again. Taking so much cash out of circulation reduces players’ betting capital and thus hurts the economy of the entire parimutuel industry.
Because the payoffs on 10-cent supers, 50-cent trifectas, etc. are much less likely to exceed the $5,000 threshold, players keep more money and continue betting with it.
WOW. Imagine that... lowering takeout keeps more money in circulation and helps the parimutuel economy. Who would have thought this to be possible. :rolleyes: