U.S.A. online sports books and taxes

**Optional** · 05-15-19, 02:19 PM

Originally posted by tbill1

Could someone please tell me if I am assuming correctly? If my state has an online sports book, will every single win be reported to the IRS? If I make 200 bets of the same amount for the year and 100 are winners where I am essentially even, will the 100 wins be reported separate from the 100 losses? So if I don't itemize (most people don't after the latest tax changes) I will be paying taxes even though I was even?

You will have to look at your states laws. Or just ask at the counter of a book what they report.

But it's most likely to be similar to how it works in Las Vegas.

Just tickets that win over 300/1 and some amount like $10k as the reportable levels.

**tbill1** · 05-15-19, 03:19 PM

Originally posted by Optional

You will have to look at your states laws. Or just ask at the counter of a book what they report.

But it's most likely to be similar to how it works in Las Vegas.

Just tickets that win over 300/1 and some amount like $10k as the reportable levels.

Thanks for your reply...Just want to double check-you are not making a distinction between being an anonymous better at a casino window and an online bettor with a paper trail -as far as how taxes are reported?

**eaglesfan371** · 05-15-19, 03:22 PM

Paper trail is created if you win 300/1 or greater parlay OR if you win a net of $5000 or more. W2G will be issued. So if you bet (and win) $2500 to win $5500 it would trigger. If you bet $2500 to win $4500 it would not trigger.

Casinos will not file gains/losses on their books unless the above is met OR you won $600 or more in drawings. For example say you win $1000 poker high hand, that would trigger end of year 1099-MISC.

That is the same in Las Vegas as well @Optional.

$10k cash payout, regardless of combination risk/winnings is reported as a CTR and reported to FINCEN.

**Optional** · 05-15-19, 05:07 PM

Originally posted by tbill1

Thanks for your reply...Just want to double check-you are not making a distinction between being an anonymous better at a casino window and an online bettor with a paper trail -as far as how taxes are reported?

Click your state on this map and it will give you a link directly to the proposed legislation there if there is any yet.

https://www.sportsbookreview.com/usa-sports-betting/

**euronet** · 05-16-19, 03:24 AM

In case that win some amounts via online sportsbooks which are registered at Panama, Curacao, etc and to all money transfers are via crypto (BTC) do I need to fill report to IRS?
Citizen of California for example.

**rzagza11** · 05-16-19, 11:19 AM

Originally posted by eaglesfan371

Paper trail is created if you win 300/1 or greater parlay OR if you win a net of $5000 or more. W2G will be issued. So if you bet (and win) $2500 to win $5500 it would trigger. If you bet $2500 to win $4500 it would not trigger.

Casinos will not file gains/losses on their books unless the above is met OR you won $600 or more in drawings. For example say you win $1000 poker high hand, that would trigger end of year 1099-MISC.

That is the same in Las Vegas as well @Optional.

$10k cash payout, regardless of combination risk/winnings is reported as a CTR and reported to FINCEN.

So never do an individual win bet of more than $5000 or withdraw more than 10K at a time. Seems pretty simple.

**MrCavalier** · 05-16-19, 12:30 PM

Originally posted by rzagza11

So never do an individual win bet of more than $5000 or withdraw more than 10K at a time. Seems pretty simple.

Lol.. Any money won is taxable income.. 1 dollar or 1 million... Up to you to file at end of year.. I have had plenty of 10K plus cashes and never been audited..Tax law states if payer doesn’t omit more then 25% of income, audit window is 3 (6 years if you omit) years.. That’s why my attorney always says claim some of the winning.. That 10k cashout might be law.. but I have on multiple occasions by passed that as well.. TIPS go along way

**mrpapageorgio** · 05-16-19, 10:00 PM

Originally posted by euronet

In case that win some amounts via online sportsbooks which are registered at Panama, Curacao, etc and to all money transfers are via crypto (BTC) do I need to fill report to IRS?
Citizen of California for example.

Legally, you have to report all income you make to the IRS if you're a US Citizen.

When it's made internationally like an offshore sports book, it's based on the honor system. However, when you sell the Bitcoin, there's some places that will file a 1099-B no matter how much you sell, some will file if you meet a certain threshold.

If you choose not to report it to the IRS, that's on you if you want to risk getting caught/audited (some people have a larger risk tolerance than others).

**eaglesfan371** · 05-16-19, 11:14 PM

Keep everything in cash. Never use exchanges.