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Taxes on gambling winnings in sports

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Racetrack bets and more
Racetrack bets and more © Cheryl Ann Quigley/Shutterstock.com

Racetrack bets and more

Although horse racing is not as popular as it once was, the "sport of kings" still draws its share of bettors.

Even though Affirmed was the last horse to win the Kentucky Derby, the Preakness Stakes and the Belmont Stakes, collectively known as the Triple Crown, in 1978, the possibility still draws lots of attention and wagers. In 2014, California Chrome broke thoroughbred fans' and bettors' hearts by coming up short at the Belmont.

Part of the allure of gambling on the horses is that it demands some study. Fans pore over the Daily Racing Form and track programs, comparing not only the animals' lineages, but jockeys' and trainers' records.

Racing also offers a variety of ways to bet. In addition to the standard win, place and show, a bettor can choose to bet a quinella, exacta, trifecta, superfecta, daily double or picks 3, 4 or 6.

Such a plethora of ways to wager is probably the basis for the old saying that the sport of kings has impoverished a lot of commoners.

That's even truer now that many tracks also have casinos, known as racinos, on the premises. Racinos are found in 15 states: Alabama, Delaware, Florida, Indiana, Iowa, Louisiana, Maine, Maryland, New Mexico, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island and West Virginia.

When your horse does make it across the line first or your slot machine pull hits all sevens, remember to let Uncle Sam know of your good luck when you file your return.

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