As online sports betting rolls out in more states, people are encountering legalized gambling in new ways. Whether you’re wagering on March Madness from your couch or flying to Las Vegas for a weekend at the tables, understanding the tax implications is key.
This year, there are also new rules to navigate. One of the quieter changes tucked into the “One Big, Beautiful Bill Act” (OBBBA) is a new way of reporting deductions on gambling income. In contrast to previous years, filers can now only write off 90% of their losses, which might mean a surprise tax bill for some in 2027.
Do you have to pay taxes on sports betting?
The IRS has clear-cut rules on gambling income that predate the recent explosion of the sports betting industry. In…