Louisville, KY – Foreign gamblers will escape U.S. taxes when they win at the Kentucky Derby and other American races under the corporate tax bill that President Bush is expected to sign.
The bill is the same one that provides for a buyout of tobacco farm quotas.
It also adopts sweeping changes to dozens of federal taxes, including the repeal of the 30% tax on foreign gamblers' winnings on horse and dog racing. The National Thoroughbred Racing Association has pushed for repeal for years, arguing that the tax discourages foreigners from betting on live broadcasts of U.S. races.
The tax applied to gamblers from countries that do not have tax treaties with the U.S. or had tax treaties that did not address the gambling tax.
Churchill Downs simulcast network president Karl Schmitt says the repeal would be good for the traack. Schmitt said the company has not projected how much it stands to gain from the tax repeal.