Washington, D.C.—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% 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% 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.”