Do Sportsbooks Report to the IRS? Tax Reporting Requirements

Yes, sportsbooks do report certain winnings to the IRS. If you win enough on a bet that meets specific thresholds, the sportsbook is legally required to file a Form W-2G with the IRS and provide you with a copy. However, there is an important distinction between what sportsbooks report and what you are required to report. Sportsbooks only file forms for qualifying wins, while you must report all gambling income on your tax return regardless of whether any form was issued.

This guide explains exactly what sportsbooks report, when reporting is triggered, what thresholds apply, and what your own obligations are as a bettor. For a broader overview of gambling taxation, see our complete guide to sports betting taxes.

Important: This article is for general educational purposes only and does not constitute tax, legal, or financial advice. Tax laws change frequently, and individual circumstances vary. Always consult a qualified tax professional for advice specific to your situation. The IRS website (irs.gov) is the authoritative source for current tax rules.

What sportsbooks are required to report

Licensed sportsbooks operating in the United States have legal obligations to report certain gambling payouts to the IRS. These obligations exist under federal tax law, and sportsbooks face penalties for noncompliance.

When a qualifying win occurs, the sportsbook must:

1. File Form W-2G with the IRS documenting the payout amount, the type of wager, and any taxes withheld
2. Provide you with a copy of the form for your tax records
3. Collect your taxpayer identification number (TIN) at the time of the qualifying win if not already on file

This applies to all regulated sportsbooks, whether they operate online or at a physical location. DraftKings, FanDuel, BetMGM, Caesars, ESPN BET, Fanatics, and every other licensed operator in the US follow the same federal reporting rules.

Sportsbooks also share information with state tax authorities in states that impose their own income taxes on gambling winnings. The specific state-level requirements vary, but in general, any win that triggers a federal W-2G also triggers state reporting.

Beyond individual transaction reporting, sportsbooks maintain detailed records of all customer activity. They track deposits, withdrawals, wagers placed, winnings, and losses. While they do not report every transaction to the IRS, this data exists and can be accessed through legal processes.

When sportsbooks must file Form W-2G

For sports betting specifically, a sportsbook must issue Form W-2G when a payout meets both of the following conditions:

1. Net winnings of $600 or more - Your profit (payout minus wager) must be at least $600
2. Odds of 300 to 1 or greater - The payout must be at least 300 times the amount wagered

Both conditions must be met simultaneously. A $600 win on a -110 straight bet would not trigger a W-2G because the odds are nowhere near 300 to 1. However, a $600 win from a $1 longshot parlay at +60000 would trigger the form because both the dollar threshold and the odds threshold are met.

This dual-threshold rule is specific to sports betting. Other types of gambling have different W-2G trigger points. Slot machine and bingo wins require a W-2G at $1,200 or more with no odds requirement. Keno requires a W-2G at $1,500 or more.

How the thresholds apply to common bet types

Understanding how these thresholds interact with different bet types helps you anticipate when a W-2G might be triggered.

Bet Type	Typical Odds Range	W-2G Likely?	Explanation
Straight bet (spread/total)	-110 to +200	Very unlikely	Odds rarely approach 300 to 1
Moneyline (heavy underdog)	+500 to +5000	Unlikely	Even long-shot moneylines rarely hit 300 to 1
Parlay (4+ legs)	+1000 to +100000	Possible	Multi-leg parlays can exceed 300 to 1
Same-game parlay (5+ legs)	+2000 to +50000	Possible	More legs increase total odds
Futures (longshot)	+5000 to +50000	Possible	Preseason longshots can exceed 300 to 1
Prop bet (longshot)	+500 to +10000	Rarely	Most props stay well under 300 to 1

The most common W-2G triggers for sports bettors are winning parlays and longshot futures bets. If you bet $5 on a 10-leg parlay at +40000 odds and it hits for a $2,005 payout, both thresholds are met: the net winnings exceed $600 and the odds exceed 300 to 1.

Do sportsbooks report winnings under $600?

This is one of the most common questions bettors have, and the answer involves an important nuance.

Sportsbooks are generally not required to file a W-2G for individual sports betting wins under $600 (or wins that do not meet the 300-to-1 odds threshold). However, that does not mean these wins go completely untracked.

Sportsbooks may still report aggregate payouts through other tax forms in certain situations. If a sportsbook pays you $600 or more in total during a calendar year through promotional payments, referral bonuses, or other non-wagering income, they may issue a Form 1099-MISC. Some sportsbooks have also issued 1099-MISC forms for net annual winnings, though this practice is not universally applied.

The critical point: your tax obligation exists regardless of any form. The IRS requires you to report all gambling income on your federal tax return, even if you never receive a W-2G or any other form. Not receiving a form does not reduce your taxable income by a single dollar.

Many bettors incorrectly assume that if they do not receive a W-2G, they do not owe taxes on their winnings. This misconception can lead to underreporting and potential penalties. The IRS has access to sportsbook data and increasingly uses data-matching programs to identify unreported gambling income.

What information sportsbooks share with the IRS

When a W-2G is triggered, the sportsbook reports the following information to the IRS:

• Your full legal name and address
• Your Social Security number or taxpayer identification number (TIN)
• The amount of the winnings (net payout minus wager)
• The date the winnings were paid
• The type of gambling transaction (sports wagering)
• Any federal income tax withheld (if applicable)
• Any state income tax withheld (if applicable)

If you cannot or do not provide your TIN at the time of a qualifying win, the sportsbook is required to apply backup withholding at a rate of 24 percent. This is one reason sportsbooks request your Social Security number during account registration. Having your TIN on file means the sportsbook can report the win without automatically withholding taxes (unless the mandatory withholding threshold is met).

Tax withholding: when sportsbooks automatically deduct taxes

Beyond reporting, sportsbooks are sometimes required to withhold federal income tax directly from your payout before you receive it. This is separate from the W-2G reporting requirement.

Mandatory withholding at 24 percent applies when:

• Your net sports betting winnings are $5,000 or more, and
• The payout is at least 300 times the wager

When both conditions are met, the sportsbook must withhold 24 percent of your net winnings for federal taxes before paying you. The amount withheld is reported on your W-2G in Box 4 and credited against your tax liability when you file your return.

Backup withholding at 24 percent applies when:

• A W-2G is triggered but you have not provided your TIN
• You previously underreported gambling income and the IRS notified the sportsbook

For more details on how withholding works, including how to handle overwithholding and claim refunds, see our guide on sports betting tax withholding.

Scenario	W-2G Filed?	Taxes Withheld?	Your Obligation
Win $200 on a -110 spread bet	No	No	Report on tax return
Win $800 on a +30000 parlay ($2 bet)	Yes	No	Report on tax return (W-2G for reference)
Win $6,000 on a +60000 parlay ($10 bet)	Yes	Yes (24%)	Report on tax return; withholding credited
Win $1,500 on a +150 moneyline	No	No	Report on tax return
Win $3,000 on a 50-to-1 futures bet	No	No	Report on tax return

Your reporting obligations as a bettor

Regardless of what your sportsbook reports, you are personally responsible for accurately reporting all gambling income to the IRS. This includes:

• Every winning sports bet, no matter the amount
• Promotional winnings such as risk-free bet payouts and bonus credits that convert to cash
• Daily fantasy sports (DFS) contest winnings
• Winnings from multiple sportsbooks combined on a single return

Gambling winnings are reported as "other income" on your federal tax return using Schedule 1 (Form 1040). If you received one or more W-2G forms, those amounts should be included, but you must also add any winnings that did not trigger a W-2G.

You can deduct gambling losses up to the amount of your gambling winnings, but only if you itemize deductions on Schedule A. You cannot deduct losses if you take the standard deduction, and you can never deduct losses that exceed your winnings for the year.

For a step-by-step walkthrough of the reporting process, see our guide on how to report sports betting winnings on your tax return.

State-level reporting requirements

In addition to federal reporting, sportsbooks must comply with state tax laws in the jurisdictions where they operate. Most states with legal sports betting impose their own income tax on gambling winnings, and sportsbooks are responsible for state-level reporting and withholding just as they are at the federal level.

State-level reporting generally mirrors federal requirements, meaning a win that triggers a federal W-2G also triggers state reporting. However, some states have additional requirements:

• Some states require reporting at lower thresholds than the federal $600 / 300-to-1 rule
• State withholding rates vary from zero (in states with no income tax) to over 10 percent
• Non-resident bettors may owe state tax in the state where the bet was placed, which can create multi-state filing obligations for bettors who travel or use apps across state lines

State withholding rates on gambling winnings differ significantly. For example, New York withholds at 10.9 percent for residents on top of federal withholding, while Pennsylvania applies a flat 3.07 percent rate. Colorado and Illinois each withhold at roughly 4 to 5 percent. Some states, like Indiana, withhold at a flat rate of 3.23 percent regardless of the amount won. These state withholding amounts appear on your W-2G alongside federal withholding.

States without an income tax, such as Texas, Florida, Tennessee, Washington, and Nevada, do not impose state-level gambling taxes on individual bettors. However, your federal obligations remain the same regardless of your state of residence. If you live in a no-income-tax state but place bets while visiting a state that does tax gambling income, you may still owe that state taxes on winnings earned there.

How sportsbooks provide your tax documents

Each major sportsbook handles year-end tax documents slightly differently, but the general process is consistent across the industry. Understanding how your sportsbook delivers these documents helps you prepare for tax season.

Most online sportsbooks make tax documents available electronically through your account settings or a dedicated tax center within the app. You will typically find your documents under a section labeled "Tax Information," "Tax Documents," or "Account Statements." Sportsbooks are required to deliver W-2G forms by January 31 for the prior tax year, and most operators send email notifications when documents are ready.

In addition to W-2G forms for qualifying individual wins, most sportsbooks provide an annual win/loss statement summarizing your total wagering activity for the year. This statement shows your aggregate wins and losses across all bet types and is useful when calculating your total gambling income and potential loss deductions. However, win/loss statements are provided as a customer convenience and are not filed with the IRS.

If you use multiple sportsbooks, you will receive separate documents from each operator. There is no consolidated reporting across platforms, so it is your responsibility to combine the information from all sportsbooks when filing your return.

Keeping records for tax season

Because sportsbooks only report certain wins to the IRS, maintaining your own betting records is essential for accurate tax filing. The IRS recommends keeping a detailed gambling log that includes:

• Date and type of each bet
• Name of the sportsbook or betting establishment
• Amount wagered and amount won or lost
• Running totals of wins and losses for the year

Good records protect you in two ways. First, they ensure you report the correct amount of income and do not underreport. Second, they substantiate your loss deductions if you itemize. Without adequate records, the IRS can disallow loss deductions entirely during an audit.

Most online sportsbooks provide transaction history and annual win/loss statements that can serve as supporting documentation. However, these statements may not match the IRS definition of gambling sessions in all cases. Sportsbook statements typically report net results per bet, while the IRS may require session-based accounting depending on your situation. Maintaining your own records alongside sportsbook reports is the safest approach.

If you bet across multiple platforms, keeping a unified spreadsheet or using a dedicated betting tracker helps consolidate data from all sources. Record each bet at the time you place it rather than trying to reconstruct your activity at the end of the year.

For a detailed guide on what to track and how to organize your betting records, see our article on sports betting records for tax season.

What happens if you do not report sports betting winnings

Failing to report gambling income can result in serious consequences from the IRS:

• Accuracy-related penalties of 20 percent of the underpaid tax amount for negligence or substantial understatement
• Interest charges that accrue from the original due date of the return
• IRS matching notices (CP2000) when the income reported on your return does not match W-2G forms the IRS received from sportsbooks
• Audit risk that increases when discrepancies are detected between sportsbook reports and your filed return

The IRS receives copies of every W-2G filed by every sportsbook. Their automated matching system compares this information to your tax return. If a sportsbook reported a $2,000 win and you did not include it on your return, the IRS will likely send you a notice.

Even for wins that did not trigger a W-2G, the IRS can audit your return and request sportsbook records. As legal sports betting expands and data sharing between sportsbooks, payment processors, and tax authorities becomes more sophisticated, the risk of unreported income being detected continues to increase.

If you receive a CP2000 notice from the IRS, it means the agency identified a discrepancy between what was reported to them and what you filed. You typically have 30 days to respond, either by agreeing with the proposed changes and paying the additional tax or by providing documentation that explains the discrepancy. Ignoring a CP2000 notice results in the IRS assessing the additional tax automatically.

The best protection is straightforward: report all gambling income accurately and keep records that support your return.

Frequently asked questions

Do sportsbooks report all winnings to the IRS?

No. Sportsbooks are only required to file Form W-2G for sports betting wins that meet both thresholds: net winnings of $600 or more and odds of 300 to 1 or greater. Most individual winning bets, especially straight bets and small parlays, do not meet these criteria and are not individually reported to the IRS by the sportsbook. However, you must still report all winnings on your tax return.

At what amount do sportsbooks report to the IRS?

For sports betting, the reporting threshold requires both a minimum win amount of $600 in net winnings and odds of at least 300 to 1 on the wager. Both conditions must be met. A $600 win at low odds would not trigger a report, and a small win at long odds would not either. The most common triggers are large parlay payouts and longshot futures wins.

Do I have to pay taxes on sports betting if I did not receive a W-2G?

Yes. All gambling winnings are taxable income at the federal level, regardless of whether you received any tax form. Not receiving a W-2G does not exempt you from reporting the income. You are legally required to include all gambling winnings on your tax return, including wins that fall below the W-2G thresholds.

Do online sportsbooks like DraftKings and FanDuel report to the IRS?

Yes. All licensed US sportsbooks, including DraftKings, FanDuel, BetMGM, Caesars, ESPN BET, Fanatics, and others, are required to follow the same federal reporting rules. When a qualifying win occurs, they file Form W-2G with the IRS just as a retail sportsbook would. Online and in-person sportsbooks have identical reporting obligations.

Can the IRS see my sports betting activity?

The IRS receives copies of all W-2G forms filed by sportsbooks. For activity that does not trigger a W-2G, the IRS does not automatically receive transaction-level data. However, the IRS can subpoena sportsbook records during an audit or investigation. Sportsbooks maintain detailed records of all customer transactions and are required to comply with lawful requests for information.

What happens if I do not report my sports betting winnings?

If the IRS discovers unreported gambling income, you may face accuracy-related penalties (typically 20 percent of the underpaid tax), interest charges dating back to the original filing deadline, and increased audit scrutiny on future returns. The IRS automated matching system flags returns that do not include income reported on W-2G forms, making detection of unreported qualifying wins highly likely.

Do sportsbooks report losses to the IRS?

No. Sportsbooks do not report your losses to the IRS. There is no tax form equivalent to the W-2G for losing bets. However, most sportsbooks provide annual win/loss statements to their customers, and you can use these statements along with your own records to substantiate gambling loss deductions if you itemize on your tax return.

Do I need to report small sports betting wins?

Yes. There is no minimum threshold below which gambling winnings become non-taxable. Even a $10 winning bet is technically taxable income. While the IRS is unlikely to pursue individual small wins that were not reported, the law requires you to include all gambling income on your return. Keeping a running total of all wins and losses throughout the year makes reporting easier.