“The negative impact of withholding is multi-faceted,” said Peggy Hendershot, the NTRA’s Senior Vice President of Legislative Affairs. “For the betting public, it has meant a confiscatory and frequently unfair loss of available capital. That loss of reinvestment or ‘churn’ leads to a reduction in overall wagering that in turn means less revenue generated for state governments, racetracks, and purse money for horsemen."
UltraHigh takeout and high booking percentages have a much greater impact on 'churn' (IN PERENTHESES !) than withholding. IT's well-known that high booking rates insure diminishing returns to the gambler and handle is way down. Horseracing was once called the poor mans wallstreet but, today, most players and the public get shaken upside down and their pockets turned inside out usually before the feature race. Trifectas, Supers, parlays like pick wagers, etc. aren't 'churn' bets. WPS and Ex are 'churn' bets and they aren't subject to withholding, so this bill won't apply. Adding insult to injury are the OTB surcharges juiced from the winners
mutual which can legally be as high as 5% of the track mutual, like as is legislated in Oregon, for example, which is probably similar law as other states. While elimination of withholding is a step in the right direction, it's clear Ms Heineshot and racing are heading in the wrong direction, once again.
Hard to believe it took 17 years to reform the law.