Las Vegas broke record for Super Bowl betting. How much are winnings taxed?
Sunday was a record-setting night for betting on Super Bowl LVIII.
If you won a bet, don’t forget taxes will be due.
Sports betting is live and legal in 38 states and Washington D.C. Mobile sports betting is more restricted, legal in 29 states and D.C., and almost operational in one more, according to the American Gaming Association. Kansas City Chiefs fans in Missouri and San Francisco 49ers fans in California couldn’t bet on the game in their home states. But sports betting is legal in neighboring states of Kansas and Nevada — plus, you don’t have to be a fan to place a bet.
The association said its survey found a record 67.8 million Americans were expected to bet on the Super Bowl, a 35% increase from last year. Bettors would wager around $23.1 billion, according to the survey.
“As the Super Bowl comes to Las Vegas for the first time, this year’s record interest in wagering marks a full circle moment for the U.S. gaming industry,” AGA president and CEO Bill Miller said in a news release.
The Nevada Gaming Control Board reported a record-breaking $185.6 million was wagered in the state’s sportsbooks on the Super Bowl, where the Kansas City Chiefs beat the San Francisco 49ers 25-22 in overtime. That’s an increase of more than $32 million from last year when the Chiefs won 38-35 over the Philadelphia Eagles.
How do taxes work?
If you win $600 or more with a payout 300 times your bet, you’ll likely receive a federal tax document from the casino or sports betting company, according to financial website NerdWallet.
Called a W-2G, this form might be given to you immediately or mailed to you later.
For some winnings of $5,000 or more, the gambling company withholds 24% of your net winnings for federal taxes, the IRS said.
Most people put their gambling winnings on their 1040 as “Other Income,” according to the IRS. On itemized taxes, you can deduct gambling losses from the taxes on your winnings.
States tax winnings differently.
In Kansas, for example, 5% of your net gambling winnings go to state taxes. Sports betting revenue in Nevada is taxed at 6.75%, according to AGA.
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This story was originally published February 13, 2024 at 2:10 PM with the headline "Las Vegas broke record for Super Bowl betting. How much are winnings taxed?."
