New York lawmakers and Governor Kathy Hochul have reached an agreement on a budget package that includes significant tax breaks for racetracks, funding for a new equine imaging research program near Belmont Park, and the elimination of outdated betting breakage laws. This budget, part of a larger $250 billion plan, aims to modernize the horse racing industry and improve financial returns for bettors, who have long sought relief from the state’s previous breakage system.
The budget provisions will reduce the pari-mutuel tax rate for New York racetracks, potentially benefiting them by approximately $5 million annually, funded by increased taxes on out-of-state advance-deposit wagering companies. Additionally, a new advanced imaging program at the Cornell Ruffian Equine Specialists hospital will be established, requiring a $2 million investment from the New York Racing Association (NYRA) and funded through a tax hike on these out-of-state companies. This initiative aims to enhance equine safety and improve research on Thoroughbred health.
The budget also reforms the breakage system, allowing winnings to be rounded to the nearest penny instead of the previous rounding system, which favored racetracks. This change is expected to increase payouts for bettors and aligns New York with other states like Kentucky that have adopted similar reforms. NYRA officials have expressed gratitude for the budget’s provisions, emphasizing their potential to bolster the horse racing industry in New York.
