You’re probably not thinking about the IRS at Super Bowl kickoff time. But if you’re making a bet on the big game, you could get hit with an unexpected tax bill depending on whether the Seahawks or the Patriots take home the trophy.
Before you put money on the Super Bowl, make sure you understand how sports betting taxes work and how to report your gambling income. Then, you can return your focus to cheering for your team and enjoying all those Super Bowl snacks.
Winnings from Super Bowl bets (or any type of sports gambling) are taxable as ordinary income at the federal level. If you win money on your bet, you’ll be taxed at a rate of 10% to 37%, depending on your tax bracket.
Your winnings are fully taxable even if you make a casual bet with friends or family. But you’re a lot more likely to come under IRS scrutiny if you win money on a sports betting platform. Those platforms, such as DraftKings or Bet365, will issue you a Form W-2G, Certain Gambling Winnings, if you win more than $600. The platform may also withhold up to 24% of your haul for federal taxes if you win more than $5,000.
Sports betting is now legal in some form in 40 states, with 30 states and the District of Columbia allowing online sports gambling. If you live in a state with an income tax, you may also owe state and/or local taxes on your proceeds.
Most states tax gambling winnings as ordinary income. However, state tax rules can vary significantly for sports betting income. For example, nine states — Connecticut, Illinois, Indiana, Kansas, Louisiana, North Carolina, Ohio, Rhode Island, and Vermont — don’t allow itemized deductions for gambling losses.
Be sure to check your state’s rules before you file your return.
You can deduct sports gambling losses in some cases, but only if you itemize your return instead of taking the standard deduction. To do so, you’ll need to keep records of your winnings and losses.
For 2025 and previous tax years, you could deduct losses up to the amount of your winnings, but if you lost more than you won, you couldn’t use the excess losses to lower your tax bill. That means if you won $1,000 betting on last year’s Super Bowl, then lost $1,000 in a World Series wager, you could offset the full profit against your losses on your 2025 return (due April 15, 2026), bringing your gambling income for the year to $0.
But the One Big Beautiful Bill Act that President Trump signed into law on July 4, 2025, introduced a new hiccup: You can only deduct 90% of gambling losses against your winnings for 2026 and subsequent tax years.
So if you win $1,000 betting on Super Bowl LX, then you lose $1,000 on your World Series bet, what happens? You can only deduct $900 of your losses (90% of $1,000). That means you’ll have $100 of gambling income on your 2026 return (due April 15, 2027), even though your winnings didn’t exceed your losses.
Don’t assume deducting gambling losses will lower your tax bill, though. The 2025 standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly. Those amounts increase to $16,100 and $32,200, respectively, in 2026. If you’re blind or you’re age 65 or older, you’ll qualify for additional standard deductions.
Itemizing will only save you money if your deductions add up to more than the standard deduction. If you lose a small amount gambling and don’t have other deductions, opting for the standard deduction will likely yield the smallest tax bill.
Assuming you’re not a professional gambler, you’ll report gambling winnings as “Other income” on your federal tax return on Form 1040 or Form 1040-SR using Schedule 1. Online sportsbooks, casinos, and other organizations will often issue you a Form W-2G if your prize money exceeds certain thresholds. But even if you don’t receive a Form W-2G, you’re responsible for reporting gambling winnings on your 1040.
If you have gambling losses, you can deduct them from your winnings. But remember: You can’t deduct more than you won, and you’ll need to itemize deductions. You can claim your losses under “Other itemized deductions” on Schedule A of Form 1040.
Professional gamblers report winnings and losses using Schedule C instead of including it as “Other income” on Schedule A. If you qualify as a pro, you can deduct gambling-related expenses, but you’re also responsible for paying self-employment taxes.
The federal tax rate for sports betting winnings ranges from 10% to 37%, depending on your individual income tax bracket. If you live in a state with an income tax, you may owe additional state taxes, but rates vary.
You can deduct sports betting losses, but only if you itemize deductions. For 2025 and earlier tax years, your losses can’t exceed your winnings. In 2026 and subsequent years, you can’t deduct more than 90% of your losses against your winnings.
Sports betting is taxable as ordinary income in most states that have an income tax. Winnings are usually taxed at the state’s income tax rate. While you can deduct losses against winnings at the federal level if you itemize, some states tax your winnings but don’t allow you to deduct losses.
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