2025 Super Bowl Winnings Tax Guide: How Much You'll Pay and When

Winning big or small in the 2024 Super Bowl betting arena means the IRS expects its share of your prize money.

If you scored a win on a Super Bowl bet this year, it’s important to understand your tax obligations. Whether your victory came from a casual office pool or a major sportsbook, federal and state tax rules apply to your gambling income.

For bets placed at licensed casinos, sportsbooks, or official venues, you might receive a Form W-2G if your winnings are $600 or more and at least 300 times your original bet. Additionally, if your payout exceeds $5,000, 24% of your winnings may be withheld upfront for federal taxes.

Even if you placed informal bets without receiving tax forms, you must report all gambling winnings on your annual tax return. The IRS Form 1040 includes a specific section for gambling income, and most tax preparation software will guide you through entering this information accurately.

Mark Steber, Chief Tax Information Officer at Jackson Hewitt, emphasizes, “No matter if you win $5 or $5,000, from any official or informal betting source, all gambling winnings must be declared on your tax return.”

If you experienced losses, you could potentially reduce your taxable income by deducting those losses—but only up to the amount of your winnings and only if you itemize deductions instead of taking the standard deduction. Since most taxpayers opt for the standard deduction, keep detailed records and receipts if you plan to claim gambling losses.

Sports betting surged during the 2024 Super Bowl, with over 50 million U.S. adults wagering an estimated $16 billion—a 61% increase from 2022, according to the American Gaming Association. Newcomers to sports betting should be aware that all winnings are taxable, and failure to report them could lead to audits or penalties.

The IRS audits roughly 1% of tax returns annually and has increased enforcement capabilities thanks to an $80 billion budget boost in 2023. Whistleblower programs also encourage reporting of unreported gambling income, so transparency is crucial.

Steber advises, “Don’t base your tax reporting on the odds of an audit. With new resources and staff, the IRS is better equipped than ever to enforce gambling tax compliance.”

Discover the latest news and current events in Personal Finance News as of 18-02-2023. The article titled " 2025 Super Bowl Winnings Tax Guide: How Much You'll Pay and When " provides you with the most relevant and reliable information in the Personal Finance News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.

The information in " 2025 Super Bowl Winnings Tax Guide: How Much You'll Pay and When " helps you make better-informed decisions within the Personal Finance News category. Our news articles are continuously updated and adhere to journalistic standards.