Recently, a number of players have emailed us surprised to have received a 1099-K form from PayPal. The funds detailed mostly include funds received from withdrawals from HorseTourneys or other gaming entities that offer PayPal or Venmo as withdrawal options. In case you are not aware, Venmo is owned by PayPal, thus they are one and the same in terms of reporting. Please understand that these forms are NOT generated by HorseTourneys. We send our own 1099-MISC forms to those players that qualify for one.

All third-party payment providers such as PayPal and Venmo are required to file 1099-K forms with the IRS if funds sent to individuals exceeds certain thresholds. Once over $20,000, this threshold was reduced to $5,000 for 2024 and will reduce to $2,500 in 2025, and again down to $600 in 2026. That the thresholds are now much lower is the primary reason players are now receiving these forms.

All funds sent to individuals from businesses (like Bet Twice Consulting, LLC, the legal name for HorseTourneys) are classified as “goods and services.” For several years now, PayPal has not permitted businesses to send funds via “friends and family”, thus, any funds sent by a business to individuals now apply toward that 1099-K threshold.

While we cannot offer tax advice, if you do receive a 1099-K from PayPal, in most cases, taxes don’t need to actually be paid on this 1099-K. We suggest that you consult with a tax advisor on how to address your particular situation.

Moving forward, to avoid this being an issue for you this year and beyond, we highly recommend that you primarily use bank transfer (ACH) for withdrawals. Payments sent directly to player bank accounts are not subject to this kind of third-party payment reporting.

More information on this can be found on PayPal’s website.

Please contact us if you have any further questions.

McKay Smith
President
HorseTourneys.com

Potential tax liability at HorseTourneys and HorsePlayers is a function of a player’s total NET WITHDRAWALS for a calendar year. Net withdrawals are defined as the total of a player’s WITHDRAWALS minus the total entry fees (i.e., purchases) played at HorseTourneys and HorsePlayers for the calendar year. Auto entries (entries won from feeder events) are counted according to their entry fee value.

If the total of NET WITHDRAWALS exceeds $600, the player will receive a 1099-MISC form in late January or early February following the year of qualification. 1099-MISC forms are the only tax forms issued (no W2Gs or otherwise).

The formula is simple:

NET WITHDRAWALS = Total Withdrawals minus Total Entry Fees (Purchases) for year

If the total of the NET WITHDRAWALS exceeds $600, a 1099-MISC form will be issued.

REPORTS: Please note that players may request updated activity reports of their activity at any time in the My Account section. These reports include total PURCHASES, DEPOSITS and WITHDRAWALS for the year selected.

To compute net withdrawals, players simply need to total the WITHDRAWALS and PURCHASES amounts from the spreadsheet, and apply the above calculation.

Questions may be directed toward support@horsetourneys.com.

Day Two Past Performances – Click Here

This November 23-24, HorseTourneys will host the inaugural “Pick & Pray Classic”.  It will serve as the fourth and final leg of the 2024 HorseTourneys Grand Slam, and will carry a guaranteed purse of $300,000. We want to get a good head start on this event, which is why we’re offering qualifying to it now, even before the Spa & Surf Showdown gets underway.

What’s most noteworthy about this event is that this will be the first time that our site has run a multi-day Pick & Pray tournament.  All of the previous Tourney Triple or Grand Slam events have been multi-day affairs, but this will be the first multi-day tournament run under the Pick & Pray format. 

Offering a multi-day Pick & Pray format been something that we’ve wanted to do for quite a while now.  But as I’ve come to learn over the last 14 years (good heavens, has it really been that long?), what I might desire as an owner/operator, and what is easily accomplished, are often two different things.  As I sometimes have to point out to those with similar wish lists for the site, web development is a time-consuming and costly endeavor, and we have to carefully choose our priorities. Fortunately, we were able to make the multi-day Pick & Pray format a reality in 2024.  

I truly believe that this event could at some point (perhaps not this year) become our largest event of the year.  “Bigger than the Spa & Surf Showdown?” you ask. “Bigger than Saratoga/Del Mar?”

Yeah, I really think so. 

Here’s why:

If people ask me what I’ve been truly surprised about during the time we’ve operated HorseTourneys, one of a few things I’ll always mention is the players’ overwhelming preference for the Pick & Pray format.

Back in the day when I first got professionally involved in organizing online handicapping contests (back before even the year 2000), running a lockdown kind of format wasn’t something that I even recall us considering.  I suppose that was because we saw the earliest online events as merely being online extensions of on-track tournaments, which, of course, allowed for selections to be made on a race-by-race basis.

Even today, some players accuse us of being biased toward the Pick & Pray format, but those are usually newer players who weren’t around for the evolution of the two formats in the early years of HorseTourneys.

When we first started, we only ran Live events.  While I can’t recall exactly how long it took for us to introduce the Pick & Pray format, I reckon that it was at least a year, if not two, before we ran the first contest in which selections had to be made prior to first post.  Since no one had done this previously online, we needed to come up with a novel name for it.  I don’t know why, but “Pick & Pray” was what came to mind.  You pick, and then you hope.  Some thought it was silly, but in marketing, sometimes a little whimsy can work, so we decided what the heck, let’s go with it. 

Little did I expect that the phrase would catch on as quickly as it did, and it has been the colloquial term for lockdown events over the last dozen years or so.

It did not take very long at all for the Pick & Pray format to establish itself, and within less than a year, it became quite clear that it was the preferred format.  Little by little, demand steered our offerings that way. It would have been bad business for us not to move in that direction.

Of course, in hindsight, it really should have been obvious.  Today, we know that players love the format for many reasons. They include:

1. It fits into busy lifestyles – players can handicap beforehand, make selections and then go on with their busy days.  Following along for hours is not required
2. It creates a sense of “leveling the playing field” — many players have told us the Pick & Pray format creates a heightened sense of equity. It’s more populist, more democratic
3. The leaderboard display, which transparently shows all player picks for every race (yes, we will always do it this way), is an interesting, engaging matrix in and of itself — the transparency it creates only adds to the aforementioned feelings of fairness and equity.  There’s zero chance that curveballs can enter the equation, or that mysterious people are changing things behind the scenes

We could go on, but those three points capture the gist of the appeal. 

But here’s the real rub: as the players have come to realize, and as the data bears out, one can participate in a Pick & Pray style of play, even in Live events, and still have confidence that they will perform as well as they would if they were playing the event race-by race.

If we analyze player scores across the board, the data proves that, on average, players perform marginally better in the Pick & Pray format than they do in the Live format.  It’s a small but not insignificant difference.

What accounts for that?  Well, lots of things.  When playing Live, players probably get more conservative as they do better, and conversely, too risky when they’re doing poorly.  Or perhaps changing odds and racing conditions have too much of an impact on decision-making.  All of these variables drag the average performance in a live setting down below what it would have been if one had stuck with their original selections. 

Of course, one isn’t going to participate in something like the NHC or BCBC on a Pick & Pray basis, but for someone who plays in hundreds or thousands of tournaments annually at HorseTourneys, it’s not difficult to understand why it has become, by miles, the preferred format.  We haven’t run the numbers in awhile, but it’s easily 90 percent Pick & Pray versus 10 percent Live, not even considering feeder events (which we almost exclusively run under the P&P format).

We think that players are going to love the opportunity to play in an extended Pick & Pray event for a major prize pool. So, it’s with keen interest that we’ll see how this initial big event goes.  To get players accustomed to the format, we’ll likely run some two-day Pick & Pray events in the near future.  If it’s something that players like, we’ll certainly look at incorporating it on a regular basis.

We look forward to hosting you for our inaugural Pick & Pray Classic in November.  Enjoy the rest of your summer, and as always, best of luck with your horseplaying.

McKay

President, HorseTourneys.com

To Our Michigan Tournament Players:

Recently, Xpressbet, which owns the online wagering licenses under which HorseTourneys and HorsePlayers operate, was notified by the Michigan Gaming Control Board that allowing Michigan residents to participate in paid handicapping tournaments is in violation of state law. As a result, effective this Wednesday, Michigan residents are no longer eligible to participate in paid tournaments offered on Xpressbet, HorseTourneys, or HorsePlayers, as well as any other handicapping tournament platform. This includes both cash and qualifier tournaments (including those to the NHC and BCBC).

As of this Wednesday, May 29, Michigan residents will no longer be permitted to deposit funds into their HorseTourneys/HorsePlayers account. If you have an existing balance, we ask that you please request withdrawal of this balance within the next 14 days. Please note that submission of taxpayer information to request a withdrawal will still be required. Instructions on providing taxpayer information may be found in the Withdrawal section, which is accessible from the Deposit page.

We are extremely disappointed with this development. Please know that Xpressbet and HorseTourneys management will actively seek remedy to allow Michigan players to resume playing on our platforms. 

We encourage you to let your local elected officials know of your displeasure with the Michigan Gaming Control Board’s decision and ask them to immediately consider changes that would allow Michigan residents to participate in handicapping tournaments. 

We will advise you of any developments as they occur. Thank you for your patronage here at HorseTourneys/HorsePlayers.

Sincerely,

HorseTourneys Management

Creating a private tournament at HorseTourneys is easy. Please follow the steps below:

IMPORTANT NOTES:
-Players must be logged-in to the site to view the link to Create Private Tournaments
-The Private Tournaments Setup Wizard is only accessible via desktop (not available on mobile site)

Get Started: Click on the “Create Private Tourney” button found on the home page in the Filter section

Step 1: Choose the date of your private tourney. Please note that only HT schedules that are active (i.e., have races imported) are available for selection. Most schedules will be available 24 hours in advance of the tournament start time

Once you have chosen a date, the list of available track schedules will be presented. Choose which schedule you wish to use.

Step 2: Choose the type of tourney you wish to create

You may choose from the standard Pool Style (normal cash games), Exacta, Survivor, Winner Take All (limited to five entries) or H2H (limited to two entries) setups.

Step 3: Choose the format of your tourney

Choose from Live (selections may be made for each race during the event) or Pick & Pray (selections lock for all events once the first race has started) formats.

Step 4: Choose the price of your tourney

Designate the cost per entry of your tourney. For Winner Take All and H2H tourneys, you must choose from a list of pre-selected fee amounts. For other events, you may designate your custom amount (minimum entry fee = $10).

Step 5: Name your tourney

Enter a name for your tourney (up to a maximum of 32 characters).

Step 6: Review and Confirm your tourney details

Review the details of your tourney. Once you have confirmed, you will be presented with a special link to tour tourney. Your guests must access the tourney via your special link. The link is also accessible under the tourney listing in the “My Entries” section of the tourney creator.

Questions should be directed to HorseTourneys Support at support@horsetourneys.com.

Good luck!

A common question we get at HorseTourneys is regarding the withdrawal of funds that have been deposited but not ultimately played. For example, a person may deposit funds and then try unsucessfully to play in contests (such as Head-to-Head events) that may not fill up. Or, perhaps a racetrack has to cancel due to weather. Why shouldn’t players be allowed to pull that money back out?

The policy of not allowing deposited funds to be withdrawn is virtually a universal one in the online gaming sector, and not a matter of being player friendly or un-friendly. There are several reasons why this is so, and why it’s one of the strictest rules we must maintain here at HorseTourneys. They are:

(1) HorseTourneys pays merchant fees on all deposits players make

To accept deposits, merchants like HorseTourneys pay fees to banks and payment processors. These fees vary by deposit type, but most gaming companies pay high transaction fees across the board on all deposit types due to the “high-risk” categorization of the business.

At HorseTourneys, our blended deposit fees are well over four (4) percent on the amount deposited. Unlike other horse racing sites (such as ADWs) and most other online gaming sites, we do not charge this percentage to the customer and instead, absorb it into our expense structure. That we do not charge these fees is an immediate and significant benefit to the HorseTourneys player.

Some people ask, “why can’t you simply refund the deposit?” Believe it or not, even if we refund a player’s deposit, we don’t get the fees we’ve paid on those funds back. Those are kept by the bank and processor (including PayPal), primarily as a means to discourage refunds. So simply refunding your card or PayPal is not a solution to the problem.

The overall profit margin after track commissions and operating expenses of HorseTourneys is very small, and deposit fees themselves are far greater than that profit margin. Therefore, from a financial standpoint, it’s simply untenable for us to allow players full refunds of amounts deposited due to common circumstances such as a contest not filling. Tournaments are unique in this way–there’s always the chance that an event may not fill to the parameters needed to run. This is a reality that tournament players must come to accept.

(2) It’s against Anti-Money Laundering Policies of regulators, banks and payment processors

The practice of allowing someone to deposit money into a business, and then pull that same money out, is practically the definition of money laundering. If this practice were allowed, criminal types could launder money through online gaming operations with abandon.

This exact practice is expressly prohibited in contracts we sign with banks, as well as against regulations of horse racing and gaming regulatory commissions. This is something that is actually examined by auditors of HorseTourneys and gaming companies like it. Literally, if we do that, we risk our gaming licenses and the ability to ultimately serve our customers.

(Less Importantly) (3) It would be a logistical nightmare

Even if we could refund players without financial impact and without regulatory hurdles, it would be a complete mess to do so. For example, consider if a major track cancels a racecard. We could literally be staring at hundreds of refund requests. It’s simply not reasonable for such accounting staff time to be dedicated to processing refunds and withdrawals due to common circumstances such as those.

At the end of the day, due to the realities of payment processing and regulations in the online gaming space, players must agree to ultimately play any funds that have been deposited. This policy is steadfast and without exception for both longtime players and newcomers alike.

Beginning in early September, the security parameters for both HorsePlayers and HorseTourneys were updated. Specifically, account sharing is no longer permitted.

What this means is that all players must access the site completely independently, using a discrete device. In other words, players are no longer permitted to access the accounts of other players. Each player must access his or her account on a unique device, be it a desktop, laptop, smartphone, iPad, or any other device that can access the internet.

Accessing of the accounts of other players will result in the locking of accounts of those involved. If an account is locked, players will be required to verify his or her account via email, which may be requested via a prompt received at login.

If your account has been locked, you must follow these instructions to unlock your account. Customer service at either HorsePlayers or HorseTourneys will not perform this function for you – this must be done by the player.

While we understand that these new security parameters may be inconvenient for some family members or otherwise that may have accessed the site via a shared device in the past, this change is obligatory moving forward.

Thank you for your cooperation.