A bill relating to the withholding on the proceeds of certain wagers with respect to horse races, dog races, and jai alai.

(Reported to House from the Committee on Ways and Means with amendment, H. Rept. 95-122)

Reduces the withholding requirements enacted in the Tax Reform Act of 1976 to impose the 20 percent withholding tax on one-half of the proceeds from any single wager placed in a pari-mutuel pool with respect to horse races, dog races, or jai alai. Stipulates that there is to be no withholding unless the amount of such proceeds is at least $1,000 and is at least 300 times as large as the wager. Eliminates the reporting requirement for gambling winnings to which withholding applies and for all winnings from pari-mutuel pools with respect to horse races, dog races, or jai alai.

Imposes withholding requirements on the net winnings of a State-conducted lottery if the proceeds are more than $5,000, regardless of whether the amount of the proceeds is determined by a pari-mutuel system.

Eliminates reporting requirements for any gambling winnings to which withholding applies.