All Good Things Come To He Who Waits

The MA Dept. of Revenue has just released a working draft relating to wagering income.  As you know, MA taxes wagering income but does not allow any deduction for wagering losses.  A deduction is allowed for the cost of the winning ticket.

Now comes the working draft which deals with (among other things) newly revised MGL Ch. 62, Sec. 3(B)(a)(18) (enacted in 2015---SEE Sec. 12 of Chapter 10 of the Acts of 2015,with an emergency preamble which makes it effective for tax year 2015).  This revision provides a deduction for “Losses from wagering transactions, that were incurred at a gaming establishment licensed in accord with chapter 23K or at any racing meeting licensee or simulcasting licensee, only to the extent of the gains from such transactions.”

As a result, MA will now allow gambling losses (but not to exceed gambling winnings) incurred at any establishment licensed by the state gaming commission (i.e. chapter 23K) or at state licensed race tracks or simulcasts.  So, forget about losses at Foxwoods, but don’t forget about losses at Plainridge (Plainville).  The MA Lottery is not included in the above, so no deduction for gambling losses.

Likewise, out of state establishments (such as Foxwoods) are also not included in this new provision.