Did You Bet on the Super Bowl? Don't Forget the Taxes
The Super Bowl is done and fans are talking about the Chiefs and the ads, but what about sports betting taxes?


The Kansas City Chiefs won Super Bowl LVII. And people are talking about the ads, and Rihanna's halftime show. But if you’re one of the estimated 50 million people who bet on the Super Bowl, it’s good to remember that it’s not all fun and games because unfortunately, some tax is involved. So, here’s what you need to know about sports betting and taxes.
Super Bowl 2023 Sports Betting Taxes
A key rule of sports betting and taxes is that sports betting is gambling, and income from gambling winnings is taxable. It doesn’t matter if those winnings come from sports betting online, straight from the casino, or as a result of a big Powerball lottery jackpot win, you need to report your winnings on your federal income tax return.
Usually, the payer (e.g., the casino, the state lottery, online sports book, etc.) will issue an IRS Form W2-G. If your winnings exceed a certain amount in some situations, the payer will withhold 24% for taxes. But even if you don’t receive a Form W2-G, the IRS expects you to report income from your gambling winnings as “other income” on your Form 1040.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Gambling Losses
What About Gambling Losses? Gambling losses are generally deductible on your federal income tax return, but only to the extent of your winnings, and if you itemize deductions. If you take the standard deduction, which most taxpayers do, you can’t deduct your gambling losses.
In any case, keep good records. If you itemize, you should be able to show the IRS the amounts of your gambling winnings, and your losses, and dates, places, and payers associated with that gambling.
Sports Betting Laws
Sports betting and sports betting online has expanded across the United States in the last few years largely because of a 2018 U.S. Supreme Court decision that allowed states to decide whether to legalize sports betting. That 6-3 ruling in a case brought by the state of New Jersey against the NCAA, NFL, NBA, NHA, and MLB, struck down a 1992 federal law that essentially allowed sports betting in Nevada, but not in other states.
"Congress can regulate sports gambling directly, but if it elects not to do so, each State is free to act on its own," the Supreme Court wrote. As a result, sports betting is currently legal in some form or another, in more than thirty states and the District of Columbia.
Keep in mind that like the federal government, most states tax income (including gambling winnings) but some states don't allow deductions for gambling losses. If you're unsure of how to report gambling winnings and losses from the state where you reside, or from a different state, check with a professional when it's time to do your taxes.
How Many People Bet on the Super Bowl?
According to estimates from the American Gaming Association (AGA), twenty percent of American adults were expected to bet more than $16 billion on Super Bowl LVII. The AGA says that this year's betting totals would be more than double last year’s, due in part to additional states legalizing sports betting in the twelve months or so.
Thirty million Super Bowl 2023 bets were expected to be placed online, and about one in five bets on the big game were likely through sports books, according to AGA estimates. Other Super Bowl LVII betting happened among friends or in betting pools (some legally and some illegally).
In a news release, AGA’s president and CEO Bill Miller says that, “every year, the Super Bowl serves to highlights the benefits of legal sports betting.” According to Miller, some of those benefits include having a regulated market to protect bettors, increased engagement for sports media, and more tax revenue for states across the country.
Related Content
- Taxes on Gambling Winnings and Losses: 8 Tips to Know
- Mega Millions After Taxes: How Much Will the Winner Get?
- Powerball Lottery Jackpot Comes With Hefty Taxes
- Seven Things You Should Know About Winning a Lottery

As the senior tax editor at Kiplinger.com, Kelley R. Taylor simplifies federal and state tax information, news, and developments to help empower readers. Kelley has over two decades of experience advising on and covering education, law, finance, and tax as a corporate attorney and business journalist.
-
-
Stock Market Today: Stocks Waver as Government Shutdown Looms
Rising yields, higher oil prices and Washington's march toward its first shutdown since 2019 sapped risk appetite.
By Dan Burrows Published
-
New California Gun and Ammo Tax Becomes Law: What to Know
Gun Taxes A new California gun control law doubles the tax on guns and ammunition purchased in the state.
By Kelley R. Taylor Published
-
Tax Relief for Maine and Massachusetts Following Hurricane Lee
Tax Deadline Following Hurricane Lee, the IRS has granted tax relief for Maine and Massachusetts taxpayers. Here are the payments and filings that qualify.
By Katelyn Washington Published
-
Inherited an IRA? Four Things Every Beneficiary Should Know
Inherited IRA Inherited IRA distribution rules have changed in ways that can significantly impact your taxes and tax strategy.
By Kelley R. Taylor Last updated
-
A Little-Known Tax-Free Way To Help Pay Your Student Loan
Student Debt Employers can provide valuable assistance with employee student loan repayments.
By Kelley R. Taylor Published
-
Tax Tips for National Preparedness Month
Disaster Preparedness September is National Preparedness Month. These tips can help you secure important documents and information — before a disaster happens.
By Katelyn Washington Published
-
Places That Now Have More Time To Pay Estimated Tax
Tax Deadlines Estimated tax payments are due soon — September 15 in most cases. But many people have more time to pay the IRS due to natural disasters. Are you one of them?
By Kelley R. Taylor Last updated
-
IRS Announces Florida Tax Relief Following Hurricane Idalia
Tax Deadline In response to the severe damage caused by Hurricane Idalia, the IRS has extended tax deadlines for affected Floridians.
By Kiana Curtis Published
-
Will Your State Rebate Check Be Taxed for 2023?
State Rebates Here's what the IRS says about taxing 'state stimulus checks' and other special state rebates and what it could mean for you.
By Kelley R. Taylor Last updated
-
Most Expensive States for Millionaires in 2023
Income Tax If you earn a lot of money, you may want to avoid these most expensive states for millionaires. Some high earners in these areas could pay income tax rates greater than 50%.
By Katelyn Washington Published