New York officials are negotiating a $5 million tax break for racetracks as part of a broader spending plan, with discussions centered around changes to the pari-mutuel tax structure. The proposal, advocated by the New York Racing Association (NYRA), aims to increase the tax rate for advance deposit wagering (ADW) operators while lowering it for Thoroughbred and Standardbred racetracks. This marks a shift from Governor Kathy Hochul’s earlier revenue-neutral proposal regarding the complex pari-mutuel tax laws.
As the state budget negotiations continue, expected changes include rounding bettors’ winnings to the nearest penny for horse race payouts and funding for a new advanced imaging screen program at the Cornell Ruffian Equine Specialists Hospital. Under the proposed tax structure, out-of-state ADWs would see an increase in their tax rate from 5% to 6.45%, while NYRA’s rate would decrease slightly from 7.45% to 6.91%.
Supporters of the tax changes argue that they will simplify the horse racing industry and create a more equitable environment for New York racetracks and ADW operators compared to their out-of-state counterparts. NYRA has expressed gratitude to Governor Hochul and the legislature for their support, emphasizing that a more consistent payment structure will enable them to better invest in the sport and its stakeholders.
