The 2023 Fall Meet is underway at Keeneland, and with it comes those who will put a $2 bet on the longshot.

But recent changes to US tax policy mean that those who win certain types of bets must report winning payouts to the IRS. How does this change impact betting?

Duke Ferguson studied betting on thoroughbred racing and found a 27% increase in types of wagers that do not require payout reporting since the new regulation was introduced.

The effect was even stronger among more experienced gamblers. And another piece of the puzzle of how $496 billion of legal tax liability goes unpaid falls into place…

Read more about Duke’s research here.