How to Pay Taxes on Sports Betting Winnings

Raised a raucous in celebration of your winning last-minute wager? You have achieved a great feat! Be wary of spending all that hard-earned cash since the Internal Revenue Service will classify it as taxable income. The essentials are summarized here:

Acknowledging Victories

If you win $600 (or $1,200 for slot machines and bingo), most gambling businesses will have you fill out Form W-2G.

By January 31st of the subsequent year, this form will be mailed to both you and the IRS. If you win money gambling and do not obtain a Form W-2G, you must still record it on your tax return.

Revenue Rate

Your total income tax bracket determines the tax rate that is applied to your winnings. The range is 10% to 37%.

Maintaining Accountability

Documenting your wins and losses in great detail is essential for recreational bettors. If you want to itemize your deductions, this will help you record your income accurately and maybe deduct losses (up to the amount of your winnings).


Even while it’s exciting to celebrate a huge gain, you should think about any taxes that may be due. You may make tax season go more smoothly and prevent penalties in the future if you know how to record your gains.