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Pari-Mutuel Pool Tax & State Horse Wagering Fee

This is a tax fee levied on operators of dog and horse race tracks in Alabama.

Pari-mutuel is a system of betting on races whereby the winners divide the total amount bet, after deducting authorized taxes, fees and management expenses, in proportion to the sums wagered individually. The total amount wagered in any particular race is the pari-mutuel pool.

Pari-Mutuel Pool Tax and State Horse Wagering fee returns are filed and paid online through My Alabama Taxes.

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There are three live dog race tracks in Alabama. They are in Mobile, Macon, and Jefferson counties. Greene County simulcasts the dog race tracks. All four counties simulcast dog and horse race tracks.

For more information on the tax law pertaining to pari-mutuel pool tax and state horse wagering, read the Code of Alabama; Title 40, Chapter 26A, Title 11, Subtitle 2, Chapter 65 and the Alabama Taxpayer’s Bill of Rights and Uniform Procedures Title 40, Chapter 2A.

Pari-mutuel Pools Tax Schedule

Tax Type Tax Rate Code of Alabama Section
Horse Wagering Fee 1% of the operator’s horse-racing handle 11-65-29
Pari-Mutuel Pool Tax 1% of the pari-mutuel pool on all pari-mutuel races 40-26A-2

Resources

View Pari-Mutuel Pool Tax & State Horse Wagering Fee FAQ

Contact Information

Business & License Tax Division
P.O. Box 327495
Montgomery, AL 36132-7495
Phone: 334-242-9612
Fax: 334-353-1809