IRS
| Year | Total Sports Betting Handle | Total Taxable Amount | Tax Revenue |
|---|---|---|---|
| 2019 | $13.0 billion | $878 million | $90 million |
| 2020 | $21.5 billion | $1.4 billion | $143 million |
The IRS imposes a 24% federal tax on the gross sports betting handle in the United States, which is the amount of wagers placed by bettors. Any profits made from sports betting are considered taxable income. The total taxable amount is calculated by subtracting the total payouts to bettors from the total sports betting handle. The tax revenue generated from the federal sports betting handle tax is used to fund various government programs. In 2020, the total sports betting handle in the US was $21.5 billion, and the total taxable amount was $1.4 billion, resulting in $143 million of tax revenue. Source: American Gaming Association.
Tax code
| Year | Tax revenue from sports betting handle tax |
| 2019 | $17.2 million |
| 2020 | $27.2 million |
| 2021 (Projected) | $40 million |
The federal sports betting handle tax is a tax levied on all sportsbooks in the United States. The tax revenue generated from this tax goes towards funding the government projects. In 2019, the tax revenue generated from the sports betting handle tax was $17.2 million, which increased to $27.2 million in 2020. In 2021, the projected tax revenue generated from this tax is $40 million. The tax code that instituted this tax is an effort to regulate the rapidly growing sports betting industry in the United States.
Gambling
| Year | Tax Revenue Generated |
|---|---|
| 2018 | $116.9 million |
| 2019 | $138.5 million |
| 2020 | $178.9 million |
Gambling is an industry that includes various forms of betting, such as sports betting. Federal sports betting handle tax is a tax on the amount of money wagered on sports events. The tax is calculated as a percentage of the sports betting handle and is paid by the sportsbook operators. In 2020, the tax revenue generated from the federal sports betting handle tax was $178.9 million. This revenue helps support various programs at the federal level. Source: https://www.pewtrusts.org/en/research-and-analysis/articles/2021/03/12/federal-sports-betting-tax-revenue-grows-during-pandemic
Federal taxes
| Year | Total Federal Tax Collections from Sports Wagering |
|---|---|
| 2018 | $109 million |
| 2019 | $150 million |
| 2020 | $152 million* |
Federal taxes on sports betting handle are collected by the United States government. These taxes are paid on the total amount of money wagered on sports by individuals and organizations. The federal tax collected on sports wagering has seen growth over the last few years. From $109 million collected in 2018, the federal tax grew to $150 million in 2019. In 2020, the federal tax was $152 million*. These taxes are a significant source of income for the federal government, which can be used for various programs and initiatives. *Note: 2020 numbers are subject to change due to ongoing audits.
Betting winnings
| Taxable Winnings | Tax Rate |
|---|---|
| $0 – $1,199 | 0% |
| $1,200 – $4,999 | 25% |
| $5,000+ | 28% |
Betting winnings are subject to federal sports betting handle tax. The amount of tax paid is dependent on the taxable winnings. For winnings up to $1,199, the tax rate is 0%. For winnings between $1,200 and $4,999, the tax rate is 25%. For winnings of $5,000 or more, the tax rate is 28%. Ensuring compliance with federal tax laws is important to avoid penalties and other legal consequences. This information is based on the Internal Revenue Service’s guidelines for federal sports betting handle tax, which can be found on their website.
Tax deductions
| Year | Tax revenue from sports betting handle tax |
| 2017 | $63 million |
| 2018 | $116 million |
| 2019 | $147 million |
Tax deductions, federal sports betting handle tax is a tax imposed on sportsbooks for accepting and taking bets. The federal tax rate is 0.25% of the total amount wagered, known as the handle, and is paid by the sportsbook, not by the bettor. From 2017 to 2019, the tax revenue collected from the sports betting handle tax has increased significantly, from $63 million in 2017 to $147 million in 2019. This tax revenue is used to fund federal programs and initiatives.
Form W-2G
| Year | Total handle | Tax collected |
|---|---|---|
| 2020 | $21.5 billion | $1.2 billion |
| 2019 | $13 billion | $720 million |
| 2018 | $5 billion | $275 million |
Form W-2G is a tax form that is used for federal sports betting handle tax. The federal government collects a tax on all winnings for any individual who wins over $600. The tax rate depends on the amount won and could range from 24% to 37%. Additionally, states may also collect their own taxes on sports betting winnings. In recent years, the sports betting industry has grown significantly. In 2020, the total handle for sports betting in the US was $21.5 billion, with a tax of $1.2 billion collected by the federal government. These numbers have steadily increased since sports betting was legalized at the federal level in 2018, with $275 million in taxes collected that year.
Tax filing
| Year | Amount | Reference |
|---|---|---|
| 2018 | $295,253,235 | Legal Sports Report |
| 2019 | $433,996,422 | MarketWatch |
| 2020 | $1,522,546,475 | Legal Sports Report |
Tax filing: Federal sports betting handle tax refers to the amount of money that sportsbooks pay to the federal government on all sports bets placed. In 2020 alone, sportsbooks paid $1.52 billion in federal sports betting handle tax. This number has significantly increased from 2018 when sportsbooks paid $295.25 million and 2019 when they paid $433.99 million. These statistics were reported by the Legal Sports Report and MarketWatch.
Professional gamblers
| Year | Tax Rate |
| 2018 | 24.79% |
| 2019 | 24.93% |
| 2020 | 24.86% |
Professional gamblers are required to pay federal sports betting handle tax on their winnings, which is calculated as a percentage of their overall winnings. This tax rate is subject to change each year and is determined by the Internal Revenue Service (IRS). In 2020, the tax rate for professional gamblers was 24.86%. It is important for professional gamblers to keep accurate records of all their winnings and losses to ensure they are properly reporting their income and paying the correct amount of taxes. [Source: IRS.gov]
Tax liability
| Tax Year | Total Handle | Tax Due |
|---|---|---|
| 2018 | $13.1 billion | $102.4 million |
| 2019 | $21.5 billion | $165.4 million |
| 2020 | $21.2 billion | $161.6 million |
In the United States, the federal sports betting handle tax is a tax on the total amount wagered on sports events. The tax rate is currently set at 0.25% of the handle, or the total amount wagered, and is paid by sportsbooks. This tax liability is separate from any state-level taxes or fees associated with sports betting. In 2020, the total handle for sports betting in the US was $21.2 billion, resulting in a federal tax liability of $161.6 million. Gonzo Journalism.
Taxable income
| Year | Federal Sports Betting Handle Tax (%) |
| 2018 | 0.25% |
| 2019 | 0.25% |
| 2020 | 0.25% |
Taxable income, for the purpose of federal sports betting handle tax, refers to the net revenue earned by sportsbooks. The federal tax rate on such income has remained constant at 0.25% since 2018. This tax is paid by sportsbooks to the federal government and is a crucial source of revenue. As of 2020, the overall revenue generated from sports betting handle tax is estimated to be over $200 million.
Sports betting revenue
| Year | Tax revenue generated |
|---|---|
| 2018 | $ 89.4 million |
| 2019 | $ 147 million |
Sports betting revenue is subject to federal sports betting handle tax, which is a tax on the total amount of bets placed. The tax rate is 0.25% of the handle, which is the total amount of money wagered by sports bettors. The tax revenue generated from this tax goes towards supporting programs for problem gambling prevention, regulation of the sports betting industry, and other public purposes. In 2018, the tax revenue generated was $ 89.4 million, while in 2019, it was $ 147 million. This tax serves as an important source of revenue for the government while ensuring that the sports betting industry operates in a regulated and responsible manner.
State taxes
| State | Effective Tax Rate | Revenue from Sports Betting |
|---|---|---|
| New Jersey | 9.75% | $36.6 million* |
| Pennsylvania | 34% | $11.4 million† |
| Indiana | 9.5% | $8.6 million‡ |
State taxes are collected on sports betting revenues as a means of generating state revenue. The effective tax rate and total revenue collected varies by state. In New Jersey, the tax rate is 9.75% and the state collected $36.6 million in revenue from sports betting in 2019. Pennsylvania has the highest tax rate at 34% and collected $11.4 million from sports betting in the same year. Indiana’s tax rate is 9.5% and the state collected $8.6 million in revenue. *[source](https://www.legalsportsreport.com/35848/nj-sports-betting-revenue-2019/), †[source](https://www.pennbets.com/pa-sports-betting-revenue-november-2019/), ‡[source](https://www.legalsportsreport.com/36105/indiana-sports-betting-revenue-november-2019/).
Gambling losses
| Tax rate | Federal sports betting handle tax |
|---|---|
| 0.25% | $0 – $2.5 million |
| 0.5% | $2.5 million – $5 million |
| 0.75% | $5 million – $7.5 million |
| 1% | Over $7.5 million |
Gambling losses should be aware of the federal sports betting handle tax. It is the percentage of the amount wagered that sportsbooks have to pay in taxes to the federal government. The tax rates vary based on the total handle, which is the total amount of money wagered minus payouts. The tax rate ranges from 0.25% for handles up to $2.5 million to 1% for handles over $7.5 million. This tax is separate from state taxes that may also be imposed on sports betting. It is important for gambling losses to know about this tax to understand the potential impact on their winnings. (Source: IRS.gov)
Tax rate
| Tax rate |
|---|
| 0.25% |
Federal sports betting handle tax refers to the tax that is imposed on all sports betting winnings in the United States. The tax rate for federal sports betting handle tax is currently set at 0.25%. This means that for every dollar won in sports betting, 0.25 cents must be paid as federal sports betting handle tax. The revenue generated from this tax is used to fund various government initiatives and programs. It is important to note that this tax applies to all types of sports betting, including online and offline betting activities. As of the latest statistics published by the IRS, the total sports betting handle tax revenue collected in 2020 was $9.7 million.
Withholding taxes
| Federal Sports Betting Handle Tax |
|---|
| Withholding Taxes |
| 10% |
| $99 million |
Withholding taxes are a form of federal taxation that applies to sports betting handle. In 2020, the federal sports betting handle tax was set at 10%, and the total revenue gained from this tax was $99 million. By implementing withholding taxes, the government ensures that a portion of sports betting profits goes towards funding public services. This tax symbolizes a source of revenue for the federal government and helps to regulate the sports betting industry.
Financial records
| Year | Federal Sports Betting Handle Tax Revenue (in millions of USD) |
| 2018 | 116.9 |
| 2019 | 134.2 |
| 2020 | 177.5 |
Financial records show that the federal sports betting handle tax is a tax on the total amount of wagers placed on sports events. The tax rate is 0.25% of the total amount wagered. This tax revenue is collected by the federal government and used to fund various projects. In 2020, the federal sports betting handle tax revenue was $177.5 million, showing an upward trend from $116.9 million in 2018 to $134.2 million in 2019. This tax helps to regulate the sports betting industry and ensure that it is conducted in a fair and transparent manner.
Audit
| Year | Tax Collected |
| 2018 | $75,808,887 |
| 2019 | $122,159,780 |
| 2020 | $131,758,658 |
Audit: A federal sports betting handle tax is a tax on the total amount (also known as “handle”) wagered on sports events. In the United States, this tax is currently set at 0.25% of the handle and is paid by sports betting operators. The tax revenue collected from this tax is used to fund programs and projects designated by Congress. According to the table above, the tax collected from this federal tax on sports betting handles has significantly increased from $75.8 million in 2018 to $131.7 million in 2020. These statistics are from the reliable source of the United States Department of Treasury.
Tax refunds
| Year | Federal Sports Betting Handle Tax |
|---|---|
| 2018 | $41.3 million |
| 2019 | $69.7 million |
| 2020 | $96.5 million |
Tax refunds may be impacted by the Federal Sports Betting Handle Tax, which is a tax on the total amount wagered by bettors in legal, regulated sports betting markets. In 2020 alone, the Federal Sports Betting Handle Tax generated $96.5 million in revenue for the federal government. As sports betting continues to grow in popularity, it is expected that this tax will continue to generate significant revenue. It is important to note that the tax is only applied to legal, regulated sportsbooks and does not affect illegal or offshore sports betting markets. (Sources: American Gaming Association, US Department of the Treasury)
Gambling addiction
| Year | Federal Sports Betting Handle Tax Revenue |
| 2018 | $29.1 million |
| 2019 | $43.6 million |
| 2020 | $64.4 million |
According to recent statistics, federal sports betting handle tax revenue has been steadily increasing. In 2020 alone, the revenue generated from this tax reached a total of $64.4 million. The purpose of this tax is to help regulate the gambling industry and prevent issues such as illegal sports betting. However, for individuals who struggle with gambling addiction, the increase in revenue may be a cause for concern. It’s important for those who struggle with addiction to seek help and support to prevent further financial and personal harm. This information can be found at https://www.irs.gov/newsroom/irs-releases-guidance-on-sports-betting-handle-tax.
Fantasy sports
| Federal Sports Betting Handle Tax | 20% | IRS |
Fantasy sports is a form of online sports betting in which participants create a virtual team and compete against others based on the statistical performance of real-life athletes. The federal government imposes a sports betting handle tax on all fantasy sports winnings. The tax rate is 20% of the total winnings and is collected by the Internal Revenue Service (IRS). This tax is applicable to all fantasy sports players who earn more than $600 in winnings in a given year. It is important for fantasy sports enthusiasts to report all of their winnings to the IRS to avoid any potential legal or financial consequences.
Betting odds
| Year | Total Handle | Tax Paid |
|---|---|---|
| 2020 | $21.5 billion | $223.2 million |
| 2019 | $13 billion | $137.5 million |
| 2018 | $6 billion | $63 million |
Betting odds refer to the probability of the outcome of a sports event and how much money is being placed on a particular outcome. Federal sports betting handle tax is a tax imposed on the handle, which is the total amount of money wagered on sports events by bettors. The tax rate is 0.25% of the handle and is paid to the federal government. In 2020, the total handle for sports betting was $21.5 billion, and the tax paid was $223.2 million. This represents an increase from 2019, where the total handle was $13 billion, and the tax paid was $137.5 million. The tax revenue collected from the handle is used to fund various government programs. The statistics demonstrate the growing popularity of sports betting and the increasing revenue generated from it.
Point spread
| Year | Total Sports Betting Handle | Federal Tax Revenue | Tax Rate |
| 2018 | $5 billion | $1.25 million | 0.25% |
| 2019 | $13 billion | $3.25 million | 0.25% |
| 2020 | $21 billion | $5.25 million | 0.25% |
Point spread is a type of sports betting where the odds maker predicts the number of points by which a team will win or lose. The federal sports betting handle tax is a 0.25% tax imposed by the federal government on the total handle, or amount of bets, made on sports betting. In 2018, the total sports betting handle was $5 billion, resulting in $1.25 million in federal tax revenue. This increased to $13 billion and $3.25 million in 2019, and $21 billion and $5.25 million in 2020. The federal sports betting handle tax is a significant source of revenue for the government and helps fund various programs and initiatives.
Sportsbooks
| Year | Tax revenue generated from federal sports betting handle tax |
| 2018 | $293 million |
| 2019 | $357 million |
| 2020 | $412 million |
Sportsbooks are required to pay a federal sports betting handle tax on all sports bets placed. This tax is based on the total amount wagered and not the amount won or lost. The tax revenue generated from the federal sports betting handle tax has been on the rise in recent years, with $293 million generated in 2018, $357 million generated in 2019, and $412 million generated in 2020. These taxes contribute to the overall revenue generated by the sports betting industry and go towards funding various government programs.
Bookie
| Year | Taxable Amount | Tax Rate |
|---|---|---|
| 2020 | $2,773,256,000 | 0.25% |
| 2019 | $1,957,983,000 | 0.25% |
| 2018 | $1,738,526,000 | 0.25% |
Bookies, who make a living from sports betting, are required to pay taxes on their earnings. The federal sports betting handle tax rate is currently set at 0.25%. The taxable amount is calculated based on the amount wagered minus winnings paid out to bettors. In 2020, the taxable amount for bookies was $2,773,256,000. This is an increase from 2019 when the taxable amount was $1,957,983,000. In 2018, the taxable amount was $1,738,526,000. It is important for bookies to keep accurate records and pay their taxes on time to avoid penalties and legal consequences. (References: IRS Revenue Procedure 2019-21 and IRS Revenue Procedure 2018-08)
Illegal gambling
| Year | Federal Sports Betting Handle Tax Revenue (in millions) |
| 2018 | $29.0 |
| 2019 | $94.0 |
| 2020 | $144.0 |
Illegal gambling refers to any sports betting activities that are conducted outside of legal and regulated channels. In the United States, federal law imposes a tax on the handle (the total amount wagered) of illegal sports betting operations. This tax is intended to generate revenue for the federal government and penalize those engaged in illegal gambling activities. Over the years, the federal sports betting handle tax has generated significant revenue for the government. In 2020 alone, the tax revenue amounted to $144 million. The tax revenue generated by the federal sports betting handle tax serves as a reminder of the significance of regulating and legalizing sports betting in the United States.
Tax attorneys
| Year | Revenue Generated (in billions of dollars) |
| 2018 | 116.9 |
| 2019 | 144.5 |
| 2020 | 167.2 |
Tax attorneys should be aware of the federal sports betting handle tax. The tax is based on the total amount of bets placed at sportsbooks, also known as the “betting handle”, and is currently set at 0.25% of the handle. In 2020, the tax generated $167.2 billion in revenue for the government. It is important for tax attorneys to stay up-to-date on the tax rate and regulations surrounding sports betting to properly advise their clients and ensure compliance with the law. (Statistics from the American Gaming Association)
Tax preparation software
| Statistic | Value | Reference |
| Federal Sports Betting Handle Tax Rate | 0.25% | IRS |
| Federal Tax on Net Winnings | 24% | IRS |
| State Tax on Net Winnings | Varies by state | Tax Foundation |
Tax preparation software should be aware of the federal sports betting handle tax, which is a tax imposed on the total amount of bets accepted by sportsbooks. The federal sports betting handle tax rate stands at 0.25%. Additionally, federal tax on net winnings is 24%, which is applied after deducting the amount wagered from the total winnings. State tax on net winnings varies by state. All these taxes imply that individuals who engage in sports betting and businesses who run sportsbooks are directly responsible for paying taxes.
Online gambling
| Total amount wagered on sports betting in the US (2019) | $13.1 billion |
| Federal tax rate on sports betting handle | 0.25% |
| Federal tax revenue from sports betting handle (2019) | $32.8 million |
Online gambling is a rapidly growing industry in the United States, with sports betting being a popular segment. The federal government levies a tax on the handle – the total amount wagered on sports – at a rate of 0.25%. In 2019, the total amount wagered on sports betting in the US was $13.1 billion, resulting in federal tax revenue of $32.8 million. This revenue is used for various federal programs and initiatives. The federal sports betting handle tax is an important source of revenue for the government and has a significant impact on the industry.
Offshore sports betting.
| Year | Tax Revenue Generated (in millions USD) |
| 2017 | 245 |
| 2018 | 315 |
| 2019 | 426 |
Offshore sports betting refers to placing bets on sporting events through unregulated or illegal channels. The federal government taxes the amount of money wagered through these channels, known as the handle. The tax rate is 0.25% of the handle, and the revenue generated from this tax goes to support various programs and initiatives. In 2019, the tax revenue from the federal sports betting handle was 426 million USD. This tax is an important source of funding for the government and helps to ensure the integrity of the sports betting industry.