Member Sign In

Super Bowl betting has become mainstream, especially as online sportsbooks have spread across the U.S. But one part of the experience is easy to overlook: if you win money on the game, the IRS treats those winnings as taxable income.

 

That matters even more for Super Bowl LX, because it takes place in 2026 — the first year a new federal rule changes how gambling losses can offset gambling winnings. Just as important is the timing: bets placed during the February 2026 Super Bowl will be reported on your 2026 tax return, which you'll file in early 2027, not on the return you file in 2026.

 

Below is a practical guide to how sports betting winnings are taxed, when sportsbooks may send tax forms or withhold taxes, how deductions for losses work, and what changes starting with the 2026 tax year.

At the federal level, money you win betting on the Super Bowl is treated as ordinary income. It's taxed the same way as wages, interest, or freelance income, not at a special gambling rate.

 

That's true whether the bet is placed through an online sportsbook, a casino, an office pool, or a one-off wager with friends. There's no "casual betting" exception in the tax code.

 

Your winnings are added to your taxable income for the year and taxed at your marginal federal income tax rate, which ranges from 10% to 37% depending on your overall income.

 

In some cases, the sportsbook or casino will flag the win for the IRS automatically. If your payout crosses certain thresholds, the platform may issue a Form W-2G reporting your gambling winnings. Larger payouts can also trigger federal tax withholding before you ever see the money.

 

But this is where many bettors get confused: not receiving a tax form does not mean the winnings are tax-free. You're still responsible for reporting gambling income on your tax return, even if the amount is small and even if no taxes were withheld upfront.

 

State taxes can also come into play. If you live in a state with an income tax, your Super Bowl winnings are generally taxable at the state level as well, though the rules vary by state. Some states follow federal treatment closely, while others are less generous when it comes to losses.

 

The key takeaway here is simple: from a tax perspective, a Super Bowl win is still income. What you do with losses — and how much they help — depends on rules that change beginning with the 2026 tax year.

Sports betting platforms don't report every winning bet to the IRS. Instead, tax reporting and withholding are triggered only when winnings cross certain thresholds.

 

In general, an online sportsbook or casino will issue Form W-2G if your net winnings from a wager exceed $600 and the payout is at least 300 times the amount you bet. When that happens, the platform reports the win to both you and the IRS.

 

For larger wins, taxes may be withheld automatically. If your winnings exceed $5,000 and are subject to withholding, the sportsbook can withhold up to 24% for federal income taxes before paying out the rest.

 

That can feel like the tax issue is "handled," but it usually isn't the end of the story. Withholding is just a prepayment. Your final tax bill depends on your total income for the year, your tax bracket, and how much was withheld across all your gambling activity.

 

Just as important: many Super Bowl bets never trigger a W-2G at all. Smaller wins, multiple modest payouts across different platforms, or informal bets won't necessarily generate tax forms. But the absence of a form doesn't change the tax rule. All gambling winnings are still taxable and must be reported on your return.

 

This is one reason Super Bowl betting can catch people off guard. A bettor might win a few hundred dollars, never receive tax paperwork, and reasonably assume there's nothing to report — only to realize later that the income was still reportable.

 

State tax rules can add another layer. If you live in a state with an income tax, gambling winnings are generally taxable at the state level as well, even if no federal withholding occurred.

 

Tax forms and withholding are useful signals, but they don't define what's taxable. They only determine what gets reported automatically and what gets paid upfront.

Gambling losses can reduce the tax hit from winning bets — but only in limited circumstances.

 

Under current law, losses can be used to offset gambling winnings only if you itemize deductions instead of taking the standard deduction. Even then, you can deduct losses only up to the amount you won. You can't use excess losses to reduce other income.

 

So if you won $800 betting on football during the year and lost $800 on other bets, you could offset the full amount and report zero net gambling income. But if you lost more than you won, the extra losses don't carry over or reduce your tax bill elsewhere.

 

That limitation matters because many casual bettors don't itemize at all. The standard deduction is large enough that itemizing just to deduct gambling losses often doesn't make sense. If you don't itemize, your losses don't help you — even if you lost as much as you won.

 

In practice, this means many Super Bowl bettors end up reporting their winnings without getting any tax benefit from their losses, simply because the math doesn't work in their favor.

 

And starting in 2026, the rules get tighter.

Beginning with the 2026 tax year, gambling losses can no longer fully offset gambling winnings. Even if you itemize, you can deduct only 90% of your losses against your winnings.

 

That creates a new outcome that didn't exist before: it's now possible to owe tax on gambling income even if your losses equal your winnings.

 

Here's a simple example.

 

Suppose you win $10,000 betting on Super Bowl LX this weekend. Later in the year, you lose $10,000 on other sports bets. Under the old rules, those amounts would cancel out.

 

Under the new rules, only $9,000 of those losses can be deducted. That leaves $1,000 of taxable gambling income — even though, in real terms, you broke even.

 

That $100 is reported on your 2026 tax return, which you'll file in early 2027, and it's taxed at your ordinary income tax rate.

 

This change doesn't affect how winnings are taxed. It doesn't change withholding rules. And it doesn't mean most casual bettors will suddenly owe large tax bills.

 

What it does change is the assumption that losses will always "wash out" wins at tax time.

If you're not a professional gambler, reporting Super Bowl betting is relatively simple.

 

Gambling winnings are reported as "other income" on your federal tax return. They're included on Form 1040 (or Form 1040-SR) using Schedule 1, where they're added to your total taxable income for the year.

 

If an online sportsbook or casino sends you a Form W-2G, the amount shown on that form should match what you report as gambling income. But even if you don't receive a W-2G, you're still required to report your winnings. The tax obligation doesn't depend on whether paperwork shows up in the mail.

 

If you have gambling losses and you itemize deductions, those losses are reported separately on Schedule A as an itemized deduction. Losses can reduce gambling income, subject to the limits in effect for the tax year — most notably the 90% cap that applies starting in 2026.

 

There are no extra federal forms required for casual bettors beyond these schedules. You don't need to attach betting slips or account statements to your return, but you should keep records showing your wins and losses in case you're ever asked to substantiate them.

 

Professional gamblers follow a different set of rules and report gambling activity on Schedule C, but that classification applies only in limited circumstances and comes with additional tax obligations, including self-employment taxes.

 

For most Super Bowl bettors, reporting comes down to one question: how much you won during the year — and whether any losses can be used to offset it.

For most people, Super Bowl betting is a small part of a single Sunday. The tax impact is usually modest, and the new rules don't turn casual wagers into major tax events.

 

Still, as sports betting continues to grow — and as the tax treatment of losses becomes more restrictive — it's worth understanding how the rules work, even if you don't expect them to matter much.

 

If you're placing bets this Super Bowl, best of luck — and enjoy the game.

 

And as tax season approaches and spring rolls on, check back at Zacks for more guidance on taxes, money decisions, and other personal finance topics that tend to matter long after the final score is forgotten.