taxes

Taxes on gambling winnings in sports

Taxes » Income Taxes »

Betting in Nevada, Delaware, New Jersey
Sports betting in Nevada, Delaware, New Jersey © L.E.MORMILE/Shutterstock.com

Betting in Nevada, Delaware, New Jersey

While full-scale sports betting is legal only in Nevada, the opportunity has opened up on the East Coast.

The Professional and Amateur Sports Protection Act, or PASPA, enacted in 1992, outlaws sports gambling everywhere except in states that had previously legalized sports wagering. This covers Delaware, Montana, Oregon and Nevada.

Delaware took advantage of its exemption and in 2009 authorized betting only on NFL games using parlay, or combined, betting cards. The limited sports betting has not deterred gamblers. The number of bets placed has increased every year, with nearly $38 million wagered in 2015.

Most online betting happens in New Jersey

In November 2013, neighboring New Jersey began offering online poker and other gambling options. According to a University of Las Vegas Center for Gaming Research study, New Jersey online betting accounts for more than 90% of the legal U.S. online gambling revenue. And while the monthly takes were inconsistent in the first year of Internet gambling, the Garden State's treasury took in almost $121 million from online bets between Nov. 21, 2013, and Nov. 30, 2014.

New Jersey also is continuing its effort to offer legalized sports betting, with a lawsuit that is working its way through the federal court system. The case is expected to eventually end up before the U.S. Supreme Court.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
advertisement

Connect with us