Taking leave from the NCAAF capping forum, having posted there for all of 2021. So, first time here in the General Discussion Forum. With the proliferation of smartphone apps in states where sports wagering is newly legal, I am wondering what can be expected on W-2G forms sent out this month; casino issued, reporting player activity.
I’ve done a bit of research, so have a small feel for the reporting rules. That is, the IRS mandates that for any bet that wins at more than 300-1 and more than $5,000, casinos withhold taxes and send them to the IRS under the bettor’s name. For wins more than 300-1, but less than $5,000, the casino reports to the IRS via a W-2G, but doesn’t withhold any money. Please correct if I’m wrong on any of that.
Straight sports wagering seems not to be addressed by those rules, so I'm seeking some clarification. Here’s an app scenario along with my take:
In various straight-wager increments, I win $7000 in 2021. Likewise, with bets all under $400 each, I lose $7000 in 2021. I’m even for the year; juice included.
The casino reports my winnings on a W-2G, but not my losses.
My win amount was cumulative. First -- is it accurate to expect a W-2G win-report of $7000?
Current tax code has few people itemizing; under 20 percent. Therefore, claiming losses largely becomes the domain of professional players. In which case, I would typically not offset my winnings.
I pay taxes on the $7000 win. If correct – my ROI is distinctly negative and online wagering becomes a sure-loss endeavor. Humble opinion on the latter…..
Any applied knowledge, and/or operational experience, would be most appreciated.
Thank you,
TheKingfish
To remove first post, remove entire topic.
Taking leave from the NCAAF capping forum, having posted there for all of 2021. So, first time here in the General Discussion Forum. With the proliferation of smartphone apps in states where sports wagering is newly legal, I am wondering what can be expected on W-2G forms sent out this month; casino issued, reporting player activity.
I’ve done a bit of research, so have a small feel for the reporting rules. That is, the IRS mandates that for any bet that wins at more than 300-1 and more than $5,000, casinos withhold taxes and send them to the IRS under the bettor’s name. For wins more than 300-1, but less than $5,000, the casino reports to the IRS via a W-2G, but doesn’t withhold any money. Please correct if I’m wrong on any of that.
Straight sports wagering seems not to be addressed by those rules, so I'm seeking some clarification. Here’s an app scenario along with my take:
In various straight-wager increments, I win $7000 in 2021. Likewise, with bets all under $400 each, I lose $7000 in 2021. I’m even for the year; juice included.
The casino reports my winnings on a W-2G, but not my losses.
My win amount was cumulative. First -- is it accurate to expect a W-2G win-report of $7000?
Current tax code has few people itemizing; under 20 percent. Therefore, claiming losses largely becomes the domain of professional players. In which case, I would typically not offset my winnings.
I pay taxes on the $7000 win. If correct – my ROI is distinctly negative and online wagering becomes a sure-loss endeavor. Humble opinion on the latter…..
Any applied knowledge, and/or operational experience, would be most appreciated.
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