Wager limits and/or tax implications in states recently legalizing wagering

[StackinGreen]

I consider doing season bets occasionally and to make them worthwhile, I consider the 4 figure range depending on the bet. I'm wondering what the policies are, I'm sure you all know, in newly legalized states for sports wagering --- are they similar to Vegas?

For example, would FanDuel or Will Hill in NJ have a bet limit before they re-adjusted lines (let's say a season win total wager) and, what would be their reporting intervals if you placed a bet? Obviously, going to a few different places and, if possible, betting numbers that you like is best at 3k or so.

Anyone know what this is like in NJ, PA, MS, etc? Are they different, or does it have to do with the book running it (Caesar's, Boyd, WH, etc.)?

Thanks in advance.

[eaglesfan371]

$1000 or more on one side generally requires ID / permission by manager on duty, outside of Vegas. Props, season win totals could be less.

William hill will be the first to limit you if you’re a winning player.

Tax forms are filed with IRS if you win a parlay/future that pays 300/1 or higher OR you net $5000 in a win. For example $4000 to win $5000 +125 bet will trigger W2G. $5000 to win $4000 -125 would not.

If the resulting payout is 10k or more (Risk + win combined) or you redeem tickets totaling that amount or greater in a 24 hour period, this triggers a CTR with FinCen.

[StackinGreen]

I thought like in horse racing it's 300-1 AND over 5k. Which means 5k to 10k is the sweet spot, since 10k no matter what is a CTR.

Wow, $1000, that's it? Unreal.

They act like this is 1970. Crazy.

[eaglesfan371]

I thought like in horse racing it's 300-1 AND over 5k. Which means 5k to 10k is the sweet spot, since 10k no matter what is a CTR.

Wow, $1000, that's it? Unreal.

They act like this is 1970. Crazy.

Yeah books are not accepting major liability yet outside of Vegas. Often times you’ll get approved for large wagers, if they deem you sharp though no.

Unfortunately no, net $5000 I believe triggers W2G. I’ve never received one though so I might be wrong, 90% sure. I received one in poker for net $5000+ and have heard it’s similar.

[Shifty]

Yeah books are not accepting major liability yet outside of Vegas. Often times you’ll get approved for large wagers, if they deem you sharp though no.

Unfortunately no, net $5000 I believe triggers W2G. I’ve never received one though so I might be wrong, 90% sure. I received one in poker for net $5000+ and have heard it’s similar.

You are wrong about 5000 net win being reported. Have had several and was never issued a W2G. There may be an win amount that generates a W2G but it's much more than 5000.

[eaglesfan371]

You are wrong about 5000 net win being reported. Have had several and was never issued a W2G. There may be an win amount that generates a W2G but it's much more than 5000.

Okay thanks for the info, good to know and really glad to hear. Had wondered about people who wagered 100k straight on superbowl if they had 25% withheld. Always thought it was net $5k.

[StackinGreen]

You are wrong about 5000 net win being reported. Have had several and was never issued a W2G. There may be an win amount that generates a W2G but it's much more than 5000.

Yes, this is consistent with the horse racing withholding laws just recently changed. You need 300-1 AND 5000 win to make it reportable. But in horses they changed the ticket to the combination value, not the base value ($.50, $1, $2 on which you technically won the bet, not the $108 in combos you spent on it, for example). So a $100 ticket that wins with a combination would require a $30k payout to have withholding. The problem is that over $10k there will be a CTR, thus the sweet spot I'm talking about is a high, but sub $10k win.

Also, as you guys know, the reason no one should ever feel bad not reporting (though technically illegal) is that they only give you a single year to write off, and many states don't allow write off losses at all. So you've played all those years trying to hit a big one and when you do, they say pay us but we don't give you anything in consideration for all the times you lost, and at a huge vig to boot. BS.

[StackinGreen]

Watch IL track you for $100 wins, lol

[Optional]

Also, as you guys know, the reason no one should ever feel bad not reporting (though technically illegal) is that they only give you a single year to write off, and many states don't allow write off losses at all. So you've played all those years trying to hit a big one and when you do, they say pay us but we don't give you anything in consideration for all the times you lost, and at a huge vig to boot. BS.

^^^ Surprised people just put up with that unfair system without much protest.

Should be no end user tax on gambling or lottery.

[StackinGreen]

You know I agree, Opti

Build it into the costs, when I walk I walk. The reason I think they keep this up is to get you on both ends; the up-fronting of the costs would drive that much more action away, so they notch it down just a bit ... then f you in the A in the end, anyway. It's funny that Europe is ahead of the US in that aspect, given uber-tax fascinations, but "punters" have their troubles over there too ...

[StackinGreen]

If I went into a NJ sportsbook this August, let's say, to bet a season win total ... or newly minted IL or IN one for that matter, how much do you think they'd take at a time (without moving the line)?

$1000 as eaglesfan said? Wow.

[BigdaddyQH]

Two things to remember here. First, with the exception of Nevada and New Jersey to a small extent, these states are in their infancy when it comes to gaming. Give them time to get all of the kinks straightened out. Next, there is no law that states you MUST pay your taxes by April 15th to cover the previous year. You can declare any day as your fiscal due date as long as it preceeds your current due day. So if you hit big on 10/1, simply claim 9/30 as the end of your fiscal year and pay your taxes up to date as of 9/30 and you will have an entire year to figure out a way to write off part or all of your gaming winnings. If you win enough, there are various investments that can defer or eliminate your taxes for your fiscal year. A sharp CPA knows these tricks.

[baseballstud]

Two things to remember here. First, with the exception of Nevada and New Jersey to a small extent, these states are in their infancy when it comes to gaming. Give them time to get all of the kinks straightened out. Next, there is no law that states you MUST pay your taxes by April 15th to cover the previous year. You can declare any day as your fiscal due date as long as it preceeds your current due day. So if you hit big on 10/1, simply claim 9/30 as the end of your fiscal year and pay your taxes up to date as of 9/30 and you will have an entire year to figure out a way to write off part or all of your gaming winnings. If you win enough, there are various investments that can defer or eliminate your taxes for your fiscal year. A sharp CPA knows these tricks.

sharp post here, thanks for sharing

[littlekona]

on the DFS side fan dual and draftkings send out 1099G if you made over 1200 profit at least this was case when I was doing heavy DFS 3 years ago....

[Craig22]

^^^ Surprised people just put up with that unfair system without much protest.

Should be no end user tax on gambling or lottery.

Taxes on gambling in general since the Sportsbook is already paying, thus subjecting the industry to "double taxation." The UK does not tax players on gambling winnings, which should be the model in the U.S. Maybe someday we will get there, though it looks highly unlikely.

[abetandy]

I got a 1099 from FanDuel for $3300 for 2018

[StackinGreen]

Do CTRs ever come back to you if you are a non criminal? If you did get audited for other reasons, could they claim you didn't report even though you kept all of your losses? Of course, I'm talking about brick and mortar guys since obviously you can't lie about online betting/tracking.