Columbus, OH – The U.S. Trotting Association announced Monday (Dec. 8) that it has formally signed on to endorse of the WAGER Act (H.R. 4630), federal legislation introduced by Rep. Andy Barr (R-KY) that would restore the full, 100% 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% beginning 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 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. It protects bettors because it restores the long-standing 100% deductions that fully offsets wagering winnings. With the 90% limit, they could still owe taxes on income that was not a profit and it maintains a fair and predictable tax structure.
The USTA 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).
To read the press release about the introduction of the WAGER Act on Rep. Barr’s website, click here.