Taxes and Prediction Markets
I just read your article, "Like Racing, States Concerned About Prediction Markets" (Dollars and Sense, Dec. 9, BH Daily).
I was an ardent horseplayer for decades, and very much enjoyed the hobby. But I could not continue to pay taxes on losses, or have all of my modest winnings taken away in taxes at the end of a hard-fought year of handicapping.
For small-wagering taxpayers like me who take the standard deduction, we are unable to get any credit for wagering losses against winnings unless the losses exceed the standard deduction. We are taxed on our gross winnings, even if that is beneath our gross losses, and the losses are "already included" in the standard deduction. In tax year 2022, approximately 91% of taxpayers opted for the standard deduction.
This issue to me never seems to get the media coverage it deserves. I would say that there are a significant number of folks with gambling debt that have that debt because they did not realize their tax liability even if they lost money gambling. There are folks like me who like to try to make money playing the game, but cannot allow themselves to be punished with this tax system.
Prediction markets offer the player the ability to easily write off losses against winnings, so the player pays taxes on their net winnings. This has to be viewed by the betting public as hugely attractive, and fair, compared with the prohibitively unfair way standard deduction taxpayers are taxed on gambling. It is hard to gauge how much of a boost to the handle for tracks would occur if taxation on gambling wagers allowed losses to be taken into account for those who take the standard deduction, but it might be surprising.
Robert Maltman
Seattle
Year of Momentum
The 2025 season marked a turning point for Thoroughbred racing, not because of a single initiative or organization, but because the industry began leaning more intentionally into transparency, collaboration, and proactive communication.
Light Up Racing was honored to play a role in this broader movement toward truth-based storytelling, stepping in as one example of what's possible when we show the public who we truly are with clarity and consistency. This year, racing fans, industry professionals, and general sports audiences engaged with LUR content in ways that were substantive, inquisitive, and often transformative. They asked questions, challenged assumptions, and—most importantly—responded to clear, accessible, science-grounded information.
The sport's story resonates when we tell it honestly, without spin, and with the courage to meet questions head-on. As we look to 2026, the mandate is clear: bold action, not passive defense.
The future of racing depends on our willingness to own our story, to communicate with transparency and consistency, and to do so collaboratively and in coordinated partnership across all leading industry organizations. When we align our voices and lead with fact, empathy, and unity, we strengthen both public confidence and internal cohesion.
But we cannot do this alone. This year's progress was made possible because donors, leaders, and organizations across the sport stepped forward—not just with belief, but with action. They recognized that modern communication is a responsibility, not a luxury. That public confidence is earned through consistency, clarity, and collective effort.
Racing's best path forward is one we build together. We enter 2026 with gratitude, resolve, and a shared commitment: More connection. More education. More impact.
The momentum is real, and the need is urgent. We invite every corner of the industry to join us—to partner, collaborate, and elevate the story of Thoroughbred racing with transparency, honesty, and pride.
Light Up Racing Board of Directors
Claiming Success
I really enjoyed the article about the Claiming Crown Championship races held in mid-November (October 2025 issue of BloodHorse Magazine). They seem to be a well-kept secret that the general public knows nothing about. God bless these wonderful horses, their owners, trainers, jockeys, and grooms.
Excellent tribute to Ron Turcotte and his family. In addition to "being the boy who rode Secretariat," I believe Ron also rode Northern Dancer in his first race. Keep up the good work.
Dixie Baker
Longmont, Colo.
