Welcome home from NYRA

[Holland Hacker]

I received the following letter from NYRA when I got home today. This was the topic of conversation during the last 1/2 of ATRAB this evening. I would guess that other ADW outfits will soon be instituting similar policies as I can't imagine that this is only applicable to NYRA ONE / Rewards account holders.


Dear NYRA Rewards Member:

We are writing to inform you of new procedures regarding the way winnings are released to your account under certain circumstances. Under the IRS Code, certain gambling winnings are reportable to the IRS on form W-2G. Generally, gambling winnings are reportable if the amount paid reduced by the cost of the winning wager(s) is (a) $600 or more and (b) at least 300 times the amount of the winning wager. In those instances where the gambling winnings reduced by the amount of the winning wager exceeds $5,000; Federal withholding tax is required in the amount of 25%.

As an illustration of how the IRS determines the cost of any wager, a $1 trifecta box bet 1-2-3 at a total cost of $6, is considered six $1 bets. Under those circumstances where winnings are derived from identical wagers (same track, race, pool, and winning numbers) all identical wagers must be added together for purposes of determining if the winnings are subject to IRS reporting and/or withholding requirements. Using the Trifecta example above if the bettor repeats the same bet and each bet results in a $400 winner, these two winners must be added together for a total of $800 minus the two $1 costs; $798 would be reportable to the IRS. If the total payout of the identical wagers exceeds the $5,000 threshold (total payout minus the cost of the wagers), 25% withholding is required.

Current technology employed by NYRA's tote provider is unable to identify and manage identical wagers automatically. Effective immediately, NYRA will release 100% of your winnings that are 300-1
or greater. NYRA personnel will determine whether or not these winnings include identical wagers that are subject to IRS reporting and/or Federal withholding tax. This review will normally be completed within one [1] hour. If it is determined that the winning wager(s) includes identical wagers that must be aggregated and subject to Federal withholding tax, your account will be charged Federal withholding tax at 25% as a separate entry. For winning wagers that are subject to Federal withholding tax, a multipart W-2G form will be mailed to your address of record. Please sign this form and return a copy to us in the postage paid pre-addressed envelope provided. For those winning wagers that are reportable a W-2G will be mailed to your address of record and this form should be retained for filing purposes.

We are currently working with our tote provider to automate this process and expect to have this issue resolved by mid-July. Once this process is automated, winnings subject to withholding and reporting will be handled in real-time.


We appreciate your patience and thank you for your participation in the NYRA Rewards program. If you have any questions regarding this matter please give us a call at 1-800-843-6972.


Sincerely,

John Ryan
NYRA Chief Administrative Officer

[hockey2315]

Ugh. . . Glad I don't bet online. . .

[The Bid]

Criminal

[blackthroatedwind]

I got the e-mail last week and the letter today. Can't say I'm happy.

[Travis Stone]

So if you bet multiple $1 tri's... and the tri only pays $350, but you have it four times, Uncle Sam knocks on the door?

[NTamm1215]

Maybe I'm missing something here, but isn't this letter indicative of the same policies in place at every American wagering outlet?

NT

[sumitas]

That is correct Travis. A lot of these in government guys are crooks. They think they don't go to the bathroom like we do.

[blackthroatedwind]

hiccup.

Rewards Program. LOL.

[Storm Cadet]

Originally Posted by Travis Stone

So if you bet multiple $1 tri's... and the tri only pays $350, but you have it four times, Uncle Sam knocks on the door?

I should be so lucky

[tector]

NYRA is running scared, given their history, the current governor and the status of their franchise. That is the sum total of the situation.

[blackthroatedwind]

Originally Posted by tector

NYRA is running scared, given their history, the current governor and the status of their franchise. That is the sum total of the situation.

What exactly is the current status of their franchise?