Gambling on college basketball’s Big Dance is no longer confined to the office pool. Several states now allow legal sports betting. Before the tournament kicks off in Dayton, here’s what you need to know.
Where It’s Legal
Sports betting is legal in eight states—Arkansas, Delaware, Mississippi, Nevada, New Jersey, Pennsylvania, Rhode Island and West Virginia—plus the District of Columbia. Within the next few months, expect another 20 or so states to consider legalizing sports betting, including California and New York.
Sponsored Content
Sponsored Content
There’s a Catch
Avoid the pitfalls of novice sports bettors. Don’t choose a team just because the odds look great, especially if it’s a parlay bet that requires several successful outcomes (for example, your team winning and having fewer fouls and more substitutions than its opponent). Avoid going all-in on an underdog after a win that might just be a fluke. (Rest in peace No. 16 UMBC, which pulled off March Madness’s biggest upset in history last year against No. 1 Virginia, then lost the next round.)
Sponsored Content
Uncle Sam Takes His Cut
The IRS considers your gambling spoils taxable income. Some states tax gambling winnings, too. Many casinos will automatically deduct taxes when you cash out. You’re allowed to deduct gambling losses from your taxes, but you must itemize, and the deduction can’t be larger than your total winnings for a given year.
QUIZ: Test Your Tax IQ: Surprising Things Taxed by the IRS
Sponsored Content
The Odds? Well, They’re Long
The likelihood of picking a perfect bracket is somewhere between one in 2 billion and one in 9.2 quintillion. Either way, it has never happened. In 2014, Warren Buffett offered $1 billion to anyone in the world who could nail a perfect bracket. Following some legal hiccups, he has since modified the award to $1 million a year for life and limited it to his 300,000 employees within Berkshire Hathaway. (As usual, the odds favor the house.)
QUIZ: How Well Do You Really Know Warren Buffett?
Sponsored Content
-
Quiz: How Much Do You Know About Taxes on Social Security Benefits?Quiz Social Security benefits often come with confusing IRS tax rules that can trip up financially savvy retirees and near-retirees.
-
Are You Ready for 65? The Medicare Initial Enrollment Period QuizQuiz Turning 65 soon? Test your basic knowledge of Medicare's Initial Enrollment Period (IEP) rules in our quick quiz.
-
3 Ways to Stretch the 2026 Social Security COLA For Your BudgetThree steps retirees can take to stretch the Social Security COLA to fit their budgets.
-
What to Do With Your Tax Refund: 6 Ways to Bring GrowthUse your 2024 tax refund to boost short-term or long-term financial goals by putting it in one of these six places.
-
What Does Medicare Not Cover? Eight Things You Should KnowMedicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
15 Reasons You'll Regret an RV in RetirementMaking Your Money Last Here's why you might regret an RV in retirement. RV-savvy retirees talk about the downsides of spending retirement in a motorhome, travel trailer, fifth wheel, or other recreational vehicle.
-
The Six Best Places to Retire in New Englandplaces to live Thinking about a move to New England for retirement? Here are the best places to land for quality of life, affordability and other criteria.
-
The 10 Cheapest Countries to VisitWe find the 10 cheapest countries to visit around the world. Forget inflation and set your sights on your next vacation.
-
15 Ways to Prepare Your Home for Winterhome There are many ways to prepare your home for winter, which will help keep you safe and warm and save on housing and utility costs.
-
Six Steps to Get Lower Car Insurance Ratesinsurance Shopping around for auto insurance may not be your idea of fun, but comparing prices for a new policy every few years — or even more often — can pay off big.
-
How to Increase Credit Scores — FastHow to increase credit scores quickly, starting with paying down your credit card debt.
