WITHHOLDING TAX ON CERTAIN GAMBLING WINNINGS.

SEC. 405. WITHHOLDING TAX ON CERTAIN GAMBLING WINNINGS. (a) In General.—Subparagraph (C) of section 3402(q)(3) of the Internal Revenue Code of 1954 (relating to sweepstakes, wagering pools, and other lotteries) is amended to read as follows: “(C) Sweepstakes, wagering pools, certain parimutuel pools, jal alai, and lotteries.—Proceeds of more than $1,000 from— “(i) a wager placed in a sweepstakes, wagering pool, or lottery (other than a wager described in subparagraph (B)),or “(ii) a wagering transaction in a parimutuel pool with respect to horse races, dog races, or jai alai if the amount of such proceeds is at least 300 times as large as the amount wagered.”. (b) Effective Date.—The amendments made by this section apply to payments made after April 30, 1977.