The National Thoroughbred Racing Association (NTRA) announced today the release of a new campaign advocating for passage of a bill that would repeal an unpopular wagering tax that was part of legislation passed by Congress earlier this year.

As part of the One Big Beautiful Bill Act (OBBBA) signed into law on July 4, there was a tax change regarding wagering losses – reducing the deduction from 100% to 90%. The change could cost horse racing upwards of a billion dollars annually in pari-mutuel handle, according to some industry estimates.

“While there were many victories for our sport in the legislation passed this summer, we noted at the time that work needed to be done to repeal the language that would effectively tax horse players on phantom income. This provision will have a negative impact on our customers who fuel a $36 billion industry responsible for nearly half a million jobs, thousands of small agribusinesses, and millions of acres of open working space,” said Tom Rooney, President and CEO of the NTRA.  

Rep. Andy Barr (R-KY) has introduced the WAGER Act (Winnings and Gains Expense Restoration Act), legislation which would restore the deduction back to 100%.

“I’m working right alongside NTRA, Breeders’ Cup, Kentucky Thoroughbred Association, Keeneland, Churchill Downs, The Jockey Club, and all our Thoroughbred horse racing advocates to reinstate the full deduction for wagering,” said Barr, Chairman of the Congressional Horse Caucus. “Estimates say this could reduce track handles by 5-8%. I’m going to keep pushing the WAGER Act to restore this full deduction so that our industry can flourish.”

The NTRA is working with its members, other like-minded organizations, and its allies on Capitol Hill urging Congress to pass the WAGER Act. The NTRA campaign was produced by the creative communications agency CTP and includes television, print and digital assets. The launch of the campaign comes just days before one of the industry’s most high-profile events, the Breeders’ Cup World Championships, to be contested Oct. 31-Nov. 1 at Del Mar in California.