So you bet on a fighter on one of the bookie sites and your fighter wins and you're rewarded the prize money and everybody lives happily afterwords. Is that how it goes or will the federal government and the state you live in come after you to tax a portion of the money you won?
Any reputable casino where the bet is made has to report anything over $6K I believe. It may be as low as $5K. You MUST fill out a form in that case with license and SSN. So yes, you have to pay taxes on it. Keep in mind though, you can deduct losses up to your winnings. Let's say you lose $20 but win $30. You can deduct $20. If you lose $30 and never win, you can't deduct anything. You better have good records though if you start deducting losses. Quick way to get audited. Anything lower, you are expected to report as income yourself. Basically, if you win small, most people don't report it. They can't track you unless you're using a casino club card.
Thanks for your reply but I wasn't talking about betting in casinos in person, I was referring to the online bookie sites such as 5Dimes an Bovada where you can bet on boxing.
Why not? 5Dimes and Bovada are sites specifically tailored for US sports bettors so I don't understand your statement.
Cause there were a bunch of people in huge debt suing credit card companies for allowing them to bet. Their argument was gambling is illegal online so why are CC companies approving gambling transactions. It's silly I know but the court system here is like that.
