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Tax on Betting Winnings

Up to $1000 in 4 risk free bets

New Customers only,T&Cs apply,21+

With the opening up of legal sports gambling across the United States, potential gamblers should really take note of the tax situation with regards to winnings for casual sports gamblers.

The first thing to note is you are liable to pay tax on both cash and non-cash winnings, i.e. if the prize is a car or holiday, this will be assessed at Fair Market value.

Everyone must pay tax on any winnings that exceed $600 in a single year (or on any bet that is valued at 300 times or more the initial wager). Should you win more than $600 or hit a big win on say, the lottery, then you must declare that when you file your tax return.

To help with this, the IRS suggests that you should keep a gambling diary which accurately records all your wins and losses. This will make filing your tax return accurately a whole lot easier and should you get audited, will allow you to quickly and accurately provide records of your gambling activities.

The format they suggest is the following for each time you gamble:


Type of Bet

Name/Address of Establishment (or Online Sportsbook)

Name of other people at the venue (if applicable)

Amount of Winnings and/or Losses

Today's Betting Odds

Tennis Parlay Bonus - up to 70% more

If your bet wins,Bet365 will add a bonus of 5 - 70% to your winnings. The bonus amount is dependent on the number of selections. T&Cs apply.

Money Monday Club

Receive a $10 Free Bet when you place a total of $50 in qualifying wagers during the previous week.T&Cs Apply,opt-in required.

Sharp Shooter Wednesdays

Opt-in & place a $50+ pre-match spread wager on any NBA Weds night game & get $1 for every 3-pointer scored. T&Cs apply.

MLB Single Game Parlay Insurance

Place a SINGLE GAME PARLAY Bet on any MLB Game with 4+ legs and receive money back up to $25 if exactly 1 leg fails. Receive up to 1 free bet refund each day! T&Cs apply

2020 Olympics Free Bets

Wager on the Olympics to get free bets! Wager $500+ & get $1 for every Bronze Medal USA Wins,Wager $1000+ & get $2 for every Silver & $1 for every Bronze Medal and Wager $2500+ to get $3 for every Gold,$2 for every Silver,and $1 for every Bronze Medal USA wins. T&Cs Apply. Free bets credited August 9. T&Cs apply.

Live Profit Boost

Players will be rewarded with a 20% Profit Boost to use on Live offerings upon logging in during the promotional period every Monday and Friday during the promotional period.T&Cs apply.

Parlay Profit Boost

20% Parlay Boost every Wednesday and Saturday on any 3+ leg parlay. T&Cs apply,NJ residents only.

2 Goals Ahead Early Payout Off

T&Cs apply. New & eligible customers only.

No Score Tie Soccer Offer

T&Cs apply. New & eligible customers ony.

One Game Parlay Insurance

A minimum of two picks and a maximum of 10 picks from a single game can be included in a One Game Parlay wager,max insurance $25. T&Cs apply. 21+

Multi-Sport Parlay Bonus

Place pre-game parlay of 2 or more selections and new customers can get 5-70% winnings depending on selections. T&Cs apply

Parlay Plus

Get 40% more in profits on winning parlays! Opt-in and place a 4-7 leg parlay on any combination of sports or event.

Upto 60% more on Parlays

If your parlay wins,get extra cash on top,from 5% to 60% depending on selections.

Weekly Free Bet

Place 10 valid sports bets online between Fridays and Thursdays and get a $5 free bet.

Tennis Cash Booster

Get a 25% cash boost on tennis bets on Wednesdays and Fridays - T&Cs apply,max stake of $50.

Parlay Boost

4%-50% boost on parlays dependent on selections. T&Cs apply

Parlay Boost

Get 40% more in profits on winning parlays! Opt-in and place a 4-7 leg parlay on any sports combo. T&Cs apply


MLB Profit Boost

20% Profit Boost for any Live MLB Bet every Tuesday and Thursday,just log in during the promo period. T&Cs apply. NJ Only

For the purposes of this website, we are all about online Sportsbooks but if you take part in any gambling activity, including the lottery, bingo, raffles, casino games, slot machines etc... then you need to record all that information accurately as well.

Gambling winnings are currently taxed at a flat rate of 24%.

If you think that the IRS won’t know about your big win then you are very much mistaken. Should your win be classified for any of the following, a W-2G Form will be issued notifying the IRS of the money won. Therefore ensure that you put it down on your tax return.

    $600 or more if the amount is at least 300 times the wager

    $1,200 or more in winnings from bingo or slot machines

    $1,500 or more in winnings from keno

    More than $5,000 in winnings from a poker tournament

    Any winnings subject to a federal income-tax withholding requirement

If you are lucky enough that you win enough that your winnings get reported on a Form W-2G, you’ll find that federal taxes are withheld at a flat rate of 24%. If you didn’t provide the casino or sportsbook your tax ID number, the withholding rate goes up to 28%. Your money will be withheld when the winnings, minus the bet are either above the $5,000 threshold and/or at least 300 times the amount of the bet

You should receive a copy of your Form W-2G showing the amount you won along with the amount of tax that has been withheld. As good practice you should include all your winnings on your tax return even if for some reason, the Form W-2G is not provided to you.

The most important thing to understand is that your winning and losses on gambling should always be accurately recorded on your tax return. Failure to do so may well result in a fine or worse down the road.

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