Chances are, you’ll only need to deal with one - income tax - so we’ll start there. There are a few taxes you might need to pay on your sports betting income. What taxes do you need to pay on your sports betting income?

So if your year wasn’t exactly lucky (that is, you lost money gambling in 2023), you won’t have to add insult to injury. One bright spot: You do have to win money in order to owe taxes on your gambling income. This applies to all types of gambling, whether you placed your bet in person, on an app, or on your computer. Just like any other form of income, gambling winnings are taxable. The swift pivot DraftKings and FanDuel are making into legal sports betting was the subject of a recent episode of the Yahoo Finance Sportsbook podcast listen below.Do you need to pay taxes on your sports betting income? It’s easy to foresee a time in the next two years when the brands will be first associated with gambling, not fantasy football. The SCOTUS decision has brought instant change to the identities of these two tech brands. “Whether you buy that, and whether that’s a great thing to do, having two things that are arguably both skill-based gambling products… That’s what they’re going to sell, they’re going to say, sports betting is over here, DFS is over there.” “They’re going to say, okay, DFS is one product, and sports betting is going to be over here, that’s another product,” says Dustin Gouker, managing editor of Legal Sports Report.

Neither company is overtly walking away from DFS. Of course, the two companies still offer their core daily fantasy sports products, and the start of another NFL season is their biggest time for new user signups. West Virginia, Pennsylvania, and Rhode Island are next up all have all passed sports betting bills and are expected to launch in the fall. Delaware and New Jersey moved quickly both launched legal sports betting in June. Supreme Court in May struck down PASPA, the federal law that prohibited states from legalizing sports betting, some states have scrambled to pass sports betting bills, and DraftKings and FanDuel have raced to set up shop along with them. Even today, there remain nine states where DraftKings and FanDuel don’t operate, because state law deems their fantasy contests illegal gambling.Īnd yet the companies are now focusing full-steam-ahead on gambling.Īfter the U.S. As recently as last fall, each company had to pay a $1.3 million “unfair and deceptive practices” fine in Massachusetts. For two years, DraftKings and FanDuel, the two leading “daily fantasy sports” companies, spent most of their time fighting legal battles with state attorneys general, and arguing that their fantasy contests did not constitute gambling.

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