A side bet with a friend and even wagering with an illegal outlet is treated as income by the IRS. Receiving a tax form is not the trigger for filing, however. For 2023, gambling withholding is equal to the cost of backup withholding: a flat 24%. The form also will be issued if your winnings are subject to withholding, including backup withholding and regular gambling withholding. A winning casino bet means the operator will send you a form W-2G. When it comes to the IRS, the threshold that sportsbooks and other gambling operators use to send tax forms is a win of $600, or 300 times your stake. For those individuals who placed bets, keeping records of winnings, losses, and filing forms, as well as betting legally, should make filing taxes easier than washing nacho cheese out of your Patrick Mahomes jersey. Two of the biggest events occur at the outset of the year-Americans wagered an estimated $16 billion on this year’s Super Bowl and $15.5 billion on the recently concluded NCAA men’s college basketball tournament, according to the trade group.įederal regulators don’t release much gambling data tied to sporting events, but the IRS and state agencies collect a share of this booming market from both business taxes on the industry and individual tax filers who gambled.

Next year is on track to be even bigger.Ĭommercial sports betting notched its first $100 billion in annual revenue though January 2023, and Ohio’s new market set a single-month state record, according to the latest tracking from the American Gaming Association.

This tax filing season is on track to be the biggest yet for sports betting.

Taxes on gambling winnings nj