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Pari-mutuel taxes

Important updates to the calculation of pari-mutuel wagering tax

Effective September 1, 2025, the excise tax imposed on any authorized racing association, corporation, or regional off-track betting (OTB) corporation authorized to conduct pari-mutuel wagering is 0.7% of the total amount wagered through their operations.

Breakage or breaks are no longer permitted, unless required by a jurisdiction in another state or foreign country.

In addition, the nonrefundable tax credit and the certain credit for OTB corporations who simulcast from a facility they operate have been repealed.

A separate return must be filed for the period August 16 through August 31, 2025, and the period September 1 through September 15, 2025. Both are due by September 30, 2025.

To calculate the tax due on wagers during the period

  • August 16 through August 31, use the rates in effect prior to September 1, 2025.
  • September 1 through September 15, use the new rate in effect September 1, 2025.

Pari-mutuel taxes include:

  • a portion of commissions withheld from wagering pools paid by a racing association or corporation conducting pari-mutuel betting in the state
  • a non-profit racing association franchise fee
  • a remittance of the breakage (the difference between a wager pool for a given bet and the total payout after rounding the payoff to bettors) if required by a jurisdiction in another state or foreign country
  • a remittance of uncashed tickets and other unclaimed funds

Breakage and Commissions

Filing frequency

Monthly

Liability filing period

The 16th day of the preceding month through the 15th day of the current month, except for March.

Due date

Last business day of each month (except for March).

Payments required to be made on March 31 must include all taxes due and accruing through the last full week of racing in March.

Tax forms for the period 8/16/25 through 8/31/25

  • Form AU-212 (4/18), New York State Pari-Mutuel Betting Tax Return
  • Form AU-212.1 (4/18), New York State Pari-Mutuel Betting Tax Return - Schedule 1 Pari-Mutuel Betting Distribution
  • Form AU-212.2 (4/18), New York State Pari-Mutuel Betting Tax Return - Schedule 2 Simulcast Receiver's Betting Distribution
  • Form AU-212.3 (4/18), New York State Pari-Mutuel Betting Tax Return - Schedule 3 Simulcast Credits Claimed
  • Form AU-212.4 (4/18), New York State Pari-Mutuel Betting Tax Return - Schedule 4 Outstanding Pari-Mutuel Tickets Balance

Tax form for the period 9/1/25 through 9/15/25

  • Form AU-212 (9/25), New York State Pari-Mutuel Betting Tax Return
  • Schedules 1-4 will be discontinued after the September filing period; do not submit these schedules for the second half of the September filing period.

Uncashed tickets and other unclaimed funds

Filing frequency

Annually

Liability or filing period

Calendar year, or portion of a calendar year, during which the uncashed tickets were sold as of December 31 of the racing season year.

Due date

First installment (Part 1 of Form AU-215) due March 15th.

Remaining uncashed ticket sums (Part 2 of Form AU-215) due April 10th.

Tax forms

Resources

Updated: