Get 125% / $2,500 on 1st deposit!
New players only. Exclusive Welcome Bonus of up to $2,500
As football season kicks off, the IRS Criminal Investigation (IRS-CI) unit is reminding sports bettors to comply with state betting laws and accurately report their winnings. The agency emphasized the importance of reporting all gambling income when filing taxes.
With nearly 50% of Americans having participated in sports betting at some point, the IRS encourages everyone to document their gambling activity. This includes recording bets, winnings, and losses. The IRS stressed the importance of filing accurate tax returns and warned against the consequences of illegal gambling activities.
“Ignorance of the tax law does not exempt individuals from their responsibilities,” the IRS-CI stated in its recent release. The agency also encourages bettors with questions to seek advice from tax professionals or visit the IRS website for guidance.
According to the American Gaming Association (AGA), an estimated $35 billion will be wagered at U.S. sportsbooks during the 2024 NFL season, marking a 30% increase from the previous year. However, illegal sports betting continues to pose challenges, with the illegal market generating over $700 million annually.
IRS-CI Chief Guy Ficco noted, “Sports betting has grown exponentially in the past five years and is more common than ever. While online gambling is easily accessible, it’s not always legal.” He added that the agency remains focused on cracking down on criminal activities related to illegal gambling, such as tax evasion and money laundering.
From 2020 to June 2024, IRS-CI launched 151 investigations into illegal gambling operations totaling over $178.8 million. These investigations have led to 71 convictions, with an average sentence of over two years in prison.
As sports betting becomes more prevalent, the IRS continues to monitor trends and ensure that bettors follow the law.