Great news! As of September 28th, TVG will implement new rules recently adopted by the IRS and U.S. Treasury Department for pari-mutuel tax reporting and withholding

Under the new regulations, the amount you wagered into a single pari-mutuel pool will be used when determining the amount reported or withheld for W-2G tax purposes, as opposed to only the amount wagered on a single winning combination.



This rule change is not retroactive and only impacts your winnings after September 28th. TVG is ready to implement this change immediately. In the short term you may notice withholdings at the former levels. We will adjust withholdings to the new requirements and refund any change to your account.


Frequently Asked Questions

Under the updated rules the IRS will look at the amount you wagered into a pari-mutuel pool when determining if a wager needs to be reported or if money needs to be withheld. Prior to this, the IRS only looked at the winning base combination amount.
Yes. Winnings of $600 or more from 300-1 or greater odds will still be reported with money withheld. The updated rules impact how the IRS determines the 300-1 odds. In the past that had been determined by the base wager amount, now it is determined by the amount a customer wagers into that pari-mutuel pool, making it less likely that your wagers will meet the criteria for reporting and withholding.
Sure! If you bet the above $2 Pick 4 ticket L1: 2,5,6,7,9 L2: 2,6,7 L3: 1,3,5,7,9 L4: 6,9 it would cost $300. If this ticket were to pay $8,000, under the old rules this would be a reportable ticket that required withholdings. It is more than $600 and 300 to 1 at a $2 ticket cost whereby $2 is the multiplier. You would receive $5,998 to your account, with $2,000 withheld. Under the new rules, the multiplier is the entire $300. Now, not only is this not a withholding ticket but it isn’t even reportable, saving you $2,000 in withholdings.
Nothing has changed here. We strongly recommend that you consult with a professional when preparing your taxes. You may still need to report your winnings even if you do not receive a W-2G and if nothing is withheld.
Per NTRA estimates, these updated regulations could lead to an increase in wagering on U.S. races of as much as $1 billion.

Should you have any additional questions, give us a call at 1-888-752-9884

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DISCLAIMER - TVG does not provide tax or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax or accounting advice. You should consult your own tax or accounting advisors regarding your tax or accounting needs.
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