Foreign betting tax could go

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By Bloodhorse


HARRISBURG, Pa. -- Bloodhorse reports that a major hurdle blocking the potential growth of international simulcasting was cleared last week when the U.S. Senate Finance Committee approved a major tax-cut bill that includes a provision eliminating a burdensome 30-percent withholding tax on winning pari-mutuel wagers placed by foreigners through U.S. pools.

Foreign tracks, such as Woodbine Entertainment in Canada, currently do not conduct common-pool wagering with
U.S. tracks because of the withholding tax on all winning tickets. As a result, separate pools on U.S. racing generally are small in size and discourage the participation of major players whose bets can have an effect on the odds.

Elimination of the tax will open the doors for foreign tracks to bet into U.S. pools throughout the year.

The approved bill calls for a $421-billion tax cut over the next decade. The House of Representatives is considering its own tax-cut package, which does not include language eliminating the tax on international wagers. The full Senate is expected to vote on its bill next week. If both versions pass, a House-Senate conference committee would rectify differences in the two bills, including the provision eliminating the pari-mutuel tax.