The National Thoroughbred Racing Association launched a campaign last week to overturn part of the “Big Beautiful Bill.” Tom Rooney, NTRA’s President and CEO, isn’t staying quiet about this.
President Trump signed that bill into law on July 4. But there’s a problem.
The legislation changed how horse racing bettors can deduct their gambling losses. They used to write off 100% of losses. Now it’s just 90%. For casual bettors and high-volume players alike, that’s a real hit.
Why This Tax Change Hurts Racing
Rooney calls it a “tax on phantom income.” That’s a big deal for an industry worth $36 billion.
The racing business employs nearly half a million people across the country. Thousands of small farms depend on it. And millions of acres of open space stay protected because of horse breeding operations.
The new rule hits regular bettors hard. These are the customers who keep tracks running and horses racing. Industry estimates suggest handles could drop 5-8% because of this change. That’s real money disappearing from an already tight market.
Smaller tracks operate on thin margins already. A 5% handle drop could be the difference between staying open and shutting down.
What Congress Might Do Next
Kentucky Representative Andy Barr introduced the WAGER Act recently. The full name? Winnings and Gains Expense Restoration Act.
It’s straightforward. The bill would restore the full 100% deduction if it passes. Barr chairs the Congressional Horse Caucus, so he’s got some pull here.
He’s not working alone. Breeders’ Cup backs the effort. So does the Kentucky Thoroughbred Association. Keeneland’s on board. Churchill Downs too. The Jockey Club joined up as well.
That’s unusual unity in an industry that doesn’t always agree on much.
How Industry Groups Plan to Win This Fight
Barr says he’s “working right alongside” all the major racing organisations. The coordination is notable.
The strategy seems clear: show Congress the economic damage. Nearly 500,000 jobs make for good talking points. Small farms shutting down makes headlines. Rural communities losing their economic engines gets attention.
But it’s not guaranteed. Congress just passed this tax change over the summer. Getting them to reverse course won’t be easy. The bill’s already signed. Money’s already been counted in budget projections.
Rooney noted there were “many victories” for racing in the summer legislation. This wasn’t one of them. The industry accepted wins on other fronts but can’t let this slide.
Track operators are watching closely. If handles really do drop 5-8%, some smaller venues might not survive. That creates pressure on everyone, from trainers to vendors to the people who clean the stables.
The WAGER Act needs support from both parties to move forward. Racing has fans across the political spectrum, which might help. But tax policy gets complicated fast, and reversing something Congress just passed takes serious political capital.
