Are you suggesting that players wouldn't get taxed on winnings ($600 or more) from sportsbook wagering?
Since my original post, I reached out to CS at both FanDuel and DraftKings along with MGM and all three informed me that ANY sportsbook winnings in excess of $600 or 300-1 would be taxed at the federal and (Ohio, in my case) state level.
After doing some calculating, it just seems like the fees associated with offshore (especially in the era of bitcoin) are a better risk/reward than playing online in a state where it is legal. Again, I was SO looking forward to January 1, but now I'm not so sure.....
If I'm missing something here please let me know. A LONGTIME member of numerous wagering sites over the years, and I GREATLY! value your opinion.
Here's the puzzling part of this..... If I play the lottery, I can (theoretically) win $599 on a daily basis, and never be taxed a penny for my winnings.
I can hit the 3-digit number, turn in my ticket at the local store and walk out with $599 ON A DAILY BASIS with no paperwork, no tax worries.
Or to put it another way, I can hit the lottery once for $5000, and at the end of the year I'll be taxed on that $5000. But if I win $599 or less on 50 other occasions, those winnings go unnoticed.
Yet I can't win $100 this week, $500 next week and $400 the week after that in Ohio's legalized sportsbooks without getting taxed.
There has to be a way around this??? Otherwise, yeah, winners are going to get hit hard after one year and resort back to other options.
I can hit the 3-digit number, turn in my ticket at the local store and walk out with $599 ON A DAILY BASIS with no paperwork, no tax worries.
Or to put it another way, I can hit the lottery once for $5000, and at the end of the year I'll be taxed on that $5000. But if I win $599 or less on 50 other occasions, those winnings go unnoticed.
Yet I can't win $100 this week, $500 next week and $400 the week after that in Ohio's legalized sportsbooks without getting taxed.
There has to be a way around this??? Otherwise, yeah, winners are going to get hit hard after one year and resort back to other options.
From everything I've read, you receive a W2G or 1099 for $ 3,000
This is from the MGM FAQ center.
W2Gs will be mailed out by January 31st and are usually delivered by the end of February.
As an operator, BetMGM must inform the IRS of these earning. US citizens and permanent residents simply add W2Gs to their tax filings (no tax withholding). For a detailed daily breakdown of wager/net wins (Losses) please reach out to customer support. W-2G's are consolidated by day and by State. This means players who had multiple wins, exceeding the stipulated win threshold per product, will receive one for each time they did/do so.
Forms are generated for individual wins and unlike a 1099 form and End of Year Statement, W2G forms are aggregate based on a 24-hour period by game type - Casino, Sports, and Poker, but do not aggregate on a full year basis. This means players who had multiple wins, exceeding the stipulated win threshold per product, will receive one for each time they did/do so.
W-2G triggered events:
Casino games, this includes all table games except where there is a live dealer (see below) with Ezugi and Evolution, are taxed at $1200 and greater. No exceptions:
What is a W2G?
Form W-2G reports gambling earnings and tax withholdings.W2Gs will be mailed out by January 31st and are usually delivered by the end of February.
As an operator, BetMGM must inform the IRS of these earning. US citizens and permanent residents simply add W2Gs to their tax filings (no tax withholding). For a detailed daily breakdown of wager/net wins (Losses) please reach out to customer support. W-2G's are consolidated by day and by State. This means players who had multiple wins, exceeding the stipulated win threshold per product, will receive one for each time they did/do so.
Forms are generated for individual wins and unlike a 1099 form and End of Year Statement, W2G forms are aggregate based on a 24-hour period by game type - Casino, Sports, and Poker, but do not aggregate on a full year basis. This means players who had multiple wins, exceeding the stipulated win threshold per product, will receive one for each time they did/do so.
W-2G triggered events:
- Whenever a player has $1,200 or more in gambling winnings from bingo or slot machines
- Whenever a player has $1,500 or more in winnings (reduced by the wager) from keno.
- Whenever a player has more than $5,000 in winnings (reduced by the wager or buy-in) from a poker tournament.
- Whenever a player has $600 or more in gambling winnings (except winnings from bingo, keno, slot machines, and poker tournaments) and the pay-out is at least 300 times the amount of the wager; or
- Any other gambling winnings subject to federal income tax withholding.
Casino games, this includes all table games except where there is a live dealer (see below) with Ezugi and Evolution, are taxed at $1200 and greater. No exceptions:
- Bet is not subtracted from the win.
- Taxes are 24% at Federal level and taxes at state level vary by state.
- US citizens and permanent residents simply add W2Gs to their tax filings (no tax withholding)
- Note: Ezugi and Evolution non-live games will be taxed.
- $600 and greater but less than $5000 are taxable but no tax withheld
- $5000 and greater are taxable immediately; taxes must be withheld
- Taxes are 24% at Federal level and taxes at state level vary by state.
- Taxable amount is the win minus the bet
- Bonus Bets are not deducted from the win Both types receive W2Gs at the end of the year.
- >$5000 for W2Gs
- Winnings are reduced by the wager
- Taxes are 24% at Federal level and taxes at state level vary by state.
doesnt sound like it if he's playing -110 odds. He'd of had to hit a huge parlay to get 300-1 AND 600. Like the guy with the horse app. He just accumulated 3k .. that's his. Right?
@raiders72
@Knightrofins
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