Gambling winnings, per the IRS, 'are fully taxable and you must report the income on your tax return. Business taxes are beyond the scope of this article and are claimed as Schedule C revenue over costs. This article will address gambling winnings when you are paying individual taxes. The IRS taxes winnings differently whether you are a casual bettor or in the trade and business of gambling. How the IRS Taxes Sports Betting Winnings A financial advisor can help you manage and invest your monetary assets. This has allowed states to set their own rules. Today the legality of sports betting is both a federal and a state matter. In 2018 a Supreme Court ruling struck down federal legislation that banned the practice nationwide. Likewise, winning a bet counts as gaining wealth, which means you must report it to the taxing authorities. This includes physical property, money and debt forgiveness.
If you gain wealth of any kind, you must pay taxes on it.
