How Much in Sports Book Wins Trigger IRS Reporting?

What is the policy on sports book wagering regarding the casino issuing tax forms on winnings?

We asked Chris Andrews, sports book director at South Point and author of our upcoming bookmaker memoir Then One Day, to give us the official word. Take it, Chris.

IRS rules mandate that for any bet that wins at more than 300-1 and more than $5,000, sports books withhold taxes and send them to the IRS under the sports bettor’s name.

Wins more than 300-1, but less than $5,000, we report to the IRS with a W-2G, but don’t withhold any money.

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Pat Higgins Sep-11-2018

P Higgins

I understand the IRS reporting as listed for sports betting But I thought any win over $1200 had to be reported with a 1099G but less that $1200 did not.  So I win $1300 but not a 300 to 1, I don't get a 1099?  If so it must be different from a slot win or table game feature bit win over $1200 where I believe a 1099G is required.  Just wondering.

That Don Guy Sep-11-2018

IRS regulations

According to the IRS, the following trigger an automatic reporting on a W-2G:
* A keno win of $1500 or more;
* A slot machine, video poker, or bingo win of $1200 or more (if you ever see a machine with an $1199 payout, now you know why);
* A poker tournament win (after subtracting the buy-in) of $5000 or more;
* Any bet with odds of 300-1 or higher that paid $600 or more (so a $1 superfecta bet that pays $500 does not trigger a W-2G)

Also, any transaction of $10,000 or more, either as a bet or as a payout, triggers a report in accordance with money laundering/RICO laws.

Also, it's a W-2G; a 1099-G is what you get when you itemize deductions and get a state tax refund, as the refund is taxable.

Roy Furukawa Sep-11-2018

Inflation

They really need to peg these kinds of things to inflation or at least review it every five years. Winning $1200 on a $25 slot is not that difficult and on higher denominations they're spitting out W2-G's on 3 cherries. There's no correlation between the $1200 in slots to the $5000 in sports betting, so why not standardize it to $5000 for both? It would certainly save the casinos a lot of hassle and paperwork.

Question of the Day - 11 September 2018

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