taxes

Taxes on gambling winnings in sports

Taxes » Income Taxes » Taxes On Gambling Winnings In Sports

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. Delaware bettors wagered more than $25 million on the NFL in 2012. For the 2013 professional football season, the state doubled the retail sites where sports lottery tickets could be bought.

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 percent 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.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
WEEKLY TAX TIP NEWSLETTER

Our tax expert Kay Bell provides resourceful tips and advice to help you stay prepared for filing.

advertisement

Connect with us