There’s more to American horseracing than the Triple Crown of Thoroughbred, which includes the Kentucky Derby, Preakness Stakes, and Belmont Stakes. There’s also the Triple Crown of Harness Racing for Trotters. Canadian-owned Marion Marauder won the Triple Crown of Trotters on October 9, making him only the ninth horse to win the Trotting Triple Crown since its inauguration in 1955.
Canadians and non-U.S. residents who bet on the Trotting Triple Crown, Triple Crown of Thoroughbred, or any other horseraces while visiting the U.S. need to remember that their pari-mutuel winnings could be subject to a 30% withholding tax by the Internal Revenue Service (IRS).
When it comes to ease and speed of reclaiming a portion or all of your withheld winnings, no one is more successful than Refund Management Services (RMS).
Triple Crown of Harness Racing for Trotters
First established in 1955, the Triple Crown of Harness Racing for Trotters consists of Hambletonian, held at the Meadowlands Racetrack in East Rutherford, New Jersey; Yonkers Trot, held at Yonkers Raceway in Yonkers, New York; and the Kentucky Futurity, held at The Red Mile in Lexington, Kentucky.
On Sunday, October 9, Marion Marauder become the ninth horse to win the Trotting Triple Crown. The horse is trained by the wife-and-husband team of Paula Wellwood and Mike Keeling, who have a 12-horse stable in Cambridge, Ontario. The colt is co-owned by their son Devin Keeling and by Wellwood’s mother, Jean.1
On Saturday, August 6, Marion Marauder won—by a nose—the Hambletonian, the biggest trotting race in the world and the first leg of the Triple Crown, taking home the $1.0 million purse.
After capturing the 2016 Hambletonian, Marian Marauder was victorious in the second leg of the Triple Crown, winning $500,000 at the Yonkers Trot by a similar margin.2
On the first Sunday in October, Marion Marauder won the $431,000 Kentucky Futurity, the final jewel in the Trotting Triple Crown in a photo finish. With the win, Marion Marauder has compiled $1.75 million in 2016 for owners Keeling and Wellwood.3
Next up for racing lovers is the Triple Crown of Thoroughbreds. The first leg is the Kentucky Derby, which takes place on Saturday, May 6, 2017.
Pari-mutuel betting is a form of betting in which those who bet on the first three places divide the losers’ bets. It’s the most popular way to bet on horseracing and consists of wagering a bet on a horse to win, place, or show. Unlike playing poker at a casino, with pari-mutuel, you are not betting against the race track; you are wagering against each other.
If you think a particular horse is going to place first, you bet Win. If you wager on a horse to Place, it must finish in either first or second. If you wager a horse to Show, it must finish either, first, second, or third.
Pari-mutuel betting differs from traditional wagering in that you are betting into a pool, and the payout is based on the number of bets. As a result, the odds can change (higher or lower) as more and more people place bets. You might place your bet on a horse with odds of 12/1, but if more and more people wager on the horse to Win, the odds will be much lower come post time.
Pari-mutuel betting is popular because the risks are somewhat lower and less complicated. In a typical race, you can wager that a horse will place in the top three from a field of 12. Your odds of winning are significantly better than if you’re playing the slots, Roulette, or Pick 6.
While pari-mutuel betting is most often associated with horseracing, it is popular in all sports where participants, in events that are of short duration, finish in a fixed order, like greyhound racing and jai alai.
RMS, the Easiest, Fastest Way to Get Your Pari-Mutuel Tax Back
If you’re a Canadian or non-U.S. resident and travelled to Lexington and placed a bet at the Kentucky Futurity or plan to travel to the U.S. to bet on the Triple Crown of Thoroughbreds and win a substantial amount of money, you need to be aware that your winnings could be subject to a 30% withholding tax by the IRS.
Unlike in Canada, in the U.S., winnings that come from games of chance, like horseracing, slots, poker, game shows, and the lottery are considered income—and the IRS takes its share upfront. If you won $1,500 betting on Marion Marauder to Win the Kentucky Futurity, you were only given $1,050. The IRS kept the rest.
But, if you live in a country like Canada, which has signed a U.S. tax treaty, you may be eligible for a refund. Best of all, RMS can help you reclaim a portion or all of your taxable winnings.
There are a number of countries that currently do not have a U.S. tax treaty. However, if you reside in any of the following countries, you could still be eligible for a refund: Australia, Bahrain, Barbados, Brazil, China, India, Indonesia, Israel, Kuwait, Mexico, Malaysia, Monaco, New Zealand, Norway, Saudi Arabia, Singapore, South Korea, Switzerland, Taiwan, Thailand, and the U.A.E.
RMS was founded by a Canadian Chartered Accountant, and has become the industry’s most reliable and experienced gaming and casino tax refund provider for non-U.S. residents.
Only RMS has the One Simple StepTM process-our Customer Service Agents take care of the rest: processing and submitting it to the IRS. It can take a minimum of one year for the IRS to review the claim and for RMS to receive the refund. Best of all, we’ve never been refused an eligible refund.
1. “Family First: Ontario’s Wellwood, Keeling, and Zeron Families Celebrate A Dream Hambelonian Victory,” Ontario Racing, August 7, 2016; http://ontarioracing.com/News-Features/News-Items/Family-First-Ontario-s-Wellwood,-Keeling-and-Zeron.aspx.
2. “Canadian Conquers Yonkers,” Standardbred Canada, September 3, 2016; http://www.standardbredcanada.ca/news/9-3-16/marion-marauder-wins-yonkers-trot.html.
3. “Marion Marauder wins trottings Triple Crown,” Harness Racing, October 9, 2016; http://www.harnessracing.com/news/marionmarauderwinstrottingstriplecrown.html.