The state of Kentucky has started taxing gross gambling winnings this year.
Now, Kentucky lawmakers are working to change that, calling it an unintended consequence of a revamped tax law.
Last year’s bill changed state tax law so that Kentucky would no longer allow gambling losses to be deducted from gambling winnings reported as taxable income.
This is making waves through the horse racing community.
Before, players could pay taxes on net income, not gross. The bill has yet to come up for a vote.
(This story was originally published on February 28, 2019)