The National Thoroughbred Racing Association (NTRA) has officially added its voice to the industry opposition to the change to the wagering tax deduction made by Congress this summer.
In a release on Oct. 28, the coalition of horse racing organizations and stakeholders confirmed it will be campaigning in favor of one of multiple bills aiming to repeal the measure included within the One Big Beautiful Bill Act (OBBBA) that cut the wagering losses tax deduction from 100% to 90%.
The measure was widely criticized by the gaming industry. The NTRA particularly opposes the change, which is set to come into effect on Jan. 1 unless one of the attempts to stop it is successful, because it believes it could cost the horse racing industry more than $1 billion annually in pari-mutuel handle.
The NTRA endorsed GOP Rep. Andy Barr’s Winnings and Gains Expense Restoration Act (WAGER Act) and this week launched a campaign that includes television, print and digital assets, days before the Breeders’ Cup World Championships on Oct. 31 to Nov. 1 in California.
“While there were many victories for our sport in the legislation passed this summer, we noted at the time that work needed to be done to repeal the language that would effectively tax horse players on phantom income,” said NTRA President and CEO Tom Rooney. “This provision will have a negative impact on our customers who fuel a $36 billion industry responsible for nearly half a million jobs, thousands of small agribusinesses, and millions of acres of open working space.”
WAGER Act is NTRA’s horse in the race
Barr is a Kentucky Republican with close ties to the horse racing industry and currently serves as Chair of the Congressional Horse Caucus. He introduced the WAGER Act in late July to restore the previous deduction of 100%. In a statement on Tuesday, Barr cited estimates that suggest the deduction cut to 90% could reduce track handles by 5-8%.
“I’m working right alongside NTRA, Breeders’ Cup, Kentucky Thoroughbred Association, Keeneland, Churchill Downs, The Jockey Club, and all our Thoroughbred horse racing advocates to reinstate the full deduction for wagering,” said Barr. “I’m going to keep pushing the WAGER Act to restore this full deduction so that our industry can flourish.”
Barr’s WAGER Act is not the only neatly acronymed bill that aims to return the deduction to 100%. Other measures have been introduced to do effectively the same thing, most prominently Nevada Democrat Dina Titus’ Fair Accounting for Income Realized from Betting Earnings Taxation Act (FAIR BET Act).
The NTRA opined in a separate press release at the start of October that it believes Barr’s bill has a better chance of passing because of Republican support in both the House and the Senate.
Barr’s bill is yet to be taken up by the House Ways and Means Committee. Meanwhile, Titus failed in an effort to fast-track her FAIR BET Act when her attempt to push it through as an amendment to the 2026 National Defense Authorization Act (NDAA) failed in September.
