Originally <a href='http://www.sportsbookreview.com/forum/showthread.php?p=25219787'>posted</a> on 01/28/2016:

In the sportsbook taxes are not deducted unless your wager meets both of these requirements; (a) it must pay more than $600, AND (b) must be odds of 300-1 or greater. You will probably never find odds that high. Now, if you do win say $10,000, you can get paid in cash but will be involved with the casino filing a CTRC-N (tracks the cash flow) and have to provide them with your name, address and SS#. Since this form goes to the IRS, you will now have to pay taxes.

The lowest threshold for this type of paperwork is $3,000, so keep your sports bet winnings below that. If you happen to have multiple winning tickets, don't cash them in within the same 24 hours or a MTL (multiple transaction log) will be generated.

Casinos withhold 28% as income tax if you do not provide a documented TIN (Taxpayer Identification Number or your Social Security Number.) The withholding tax is 30% if a foreign gambler (You can later get that money back from IRS.)