The United States Trotting Association (USTA) announced on Monday, Dec. 8 that it has formally signed on to endorse the Winnings and Gains Expense Restoration (WAGER) Act (H.R. 4630), United States federal legislation introduced by Rep. Andy Barr (R-KY) that would restore the full, 100 per cent deductibility of gambling losses.
The Act seeks to reverse provisions of the 2025 “One Big Beautiful Bill Act,” which is set to reduce wagering-loss deductibility to 90 per cent beginning on Jan. 1, 2026.
Following a recommendation by USTA Executive Vice President and CEO Mike Tanner, the Association’s Executive Committee voted to approve the endorsement. With the endorsement, the USTA is now publicly aligned with a growing list of industry organizations advocating for passage of H.R. 4630.
“The WAGER Act delivers meaningful tax fairness for horseplayers and strengthens the wagering environment that our sport depends on,” said Tanner. “By restoring the full deduction for wagering losses, this legislation supports everyday bettors, protects handle and helps ensure that pari-mutuel wagering remains competitive in a rapidly evolving gambling market.”
The USTA stated in a Dec. 8 press release that the legislation is particularly important for the horse racing sector, where wagering serves as the backbone of purse generation, economic activity and the viability of racetracks across the country. The USTA claims it protects bettors because it restores the long-standing 100 per cent deductions that fully offsets wagering winnings, as with the 90 per cent limit, they could still owe taxes on income that was not a profit and it maintains a fair and predictable tax structure.
The USTA stated that it remains committed to promoting legislation that strengthens wagering integrity, protects participants and enhances the long-term health of the harness racing industry nationwide.
The legislation was introduced by Rep. Barr in the 119th Congress (2025-2026).
A July 25, 2025 press release from Rep. Barr about the introduction of the WAGER Act appears below.
Barr Introduces WAGER Act to Boost Equine Industry and Rural Economies
July 25, 2025
Today, U.S. Congressman Andy Barr (R-KY) introduced the Winnings and Gains Expense Restoration (WAGER) Act of 2025. This legislation enables wagerers to fully deduct legitimate wagering losses from their winnings.
“Restoring full deductibility of wagering losses will help the Thoroughbred horse racing industry maximize economic value for equine businesses,” said Congressman Barr, Chairman of the Congressional Horse Caucus. “I’ll work to deliver the WAGER Act in Congress and appreciate the work of equine and Thoroughbred horse racing advocates in fighting for this bill alongside me.”
“I am pleased that Rep. Barr continues to show his support for the horse industry by sponsoring the WAGER Act, which will restore the ability of horseplayers to deduct 100 per cent of gambling losses in a tax year,” said Damon Thayer, former State Senate Majority Leader. “Its passage is critical to the very foundation of the horse racing industry: fans and customers. The tax code should encourage support for Kentucky’s signature industry, and I appreciate Rep. Barr’s understanding of the financial underpinnings that make it work. I look forward to its successful passage before the end of the year.”
Ensuring horseplayers can fully deduct losses is essential to maintaining a healthy wagering ecosystem that drives purses, supports breeders and sustains the broader racing economy,” said Shannon Arvin, CEO of Keeneland. “Keeneland thanks Congressman Barr for his proactive leadership and advocacy for the horse racing community and its economic future.
“Breeders' Cup stands behind the horseplayers that form a vital cornerstone of our sport, directly contributing to Thoroughbred racing's entire ecosystem with their wagering activity. We recognize the need for a fair and realistic tax framework for bettors, and thank Congressman Barr for his continued leadership and advocacy on policy issues that impact horse racing,” said Drew Fleming, President & CEO, Breeders’ Cup Limited.
“Kentucky’s live handle has grown since 2020, bucking a national trend to become the best racing circuit in America. Horseplayers are vital to the livelihoods of over 33,000 Kentuckians employed in horse racing, and KTA is grateful to Congressman Barr for supporting our owners, trainers, breeders and horseplayers equally to ensure competitiveness,” said Chauncey Morris, Executive Director of the Kentucky Thoroughbred Association.
“The NTRA commends Congressman Barr for introducing the WAGER Act, which will restore the 100 per cent tax deduction for gaming losses,” said NTRA President and CEO Tom Rooney. “Thoroughbred racing is built on horseplayers. The changes to the tax deduction are harmful to them and must be fixed. We’re glad that this issue has not been ignored and look forward to it being swiftly addressed. Congressman Barr has always been an advocate for the Thoroughbred racing industry and continues to be with this bill. The NTRA will continue to work alongside the Representative, the Trump administration and leaders in the House and Senate to restore the tax deduction.”
(With files from USTA & The Office of U.S. Congressman Andy Barr)