As it should be, collecting your winnings from a sports bet is a fairly straightforward process but there are a few things you should know. The standard situation is that once your ticket becomes a winner you bring it to the betting counter, they scan it for you and give you the cash or chips.

1. How Do Betting Payouts Work
2. Pay Out Sports Betting
3. Pay Out Sports Betting Games
4. Pay Out Sports Betting Money
5. Legal Sports Betting In Maryland
6. Sports Betting Lines

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Alternatively, you can also apply it towards your next bet instead. If the sportsbook closes before you get a chance to cash it in, you can often bring it to the main cashier and they will do it for you.

The standard rules for cashing in a winning sports betting ticket is that you have 120 days to do it after the event has ended. If that time passes the ticket becomes void. It is important that you are careful with your ticket, as it is the same thing as carrying cash. If you lose it and do not know the transaction number for your bet, there is nothing the sportsbook can do for you. Anyone can find it and collect.

Mailing in Your Sports Betting Ticket

As will be the case with many winning sports tickets, the bettor is a tourist and not in town to collect. If you know you are not going to return to Vegas within 120 days, or you just don’t feel like waiting to go back, you have the option of mailing your ticket to the sportsbook and you will receive a check within a few weeks.

The address of where and who exactly to mail the ticket to is explained clearly on the back of your ticket. You can use regular mail but the tickets say to use registered mail so that your ticket is more easily traced and harder to steal. Registered mail is held under lock and key and takes a long time to deliver as this is does exclusively via ground. Depending on how much the winning ticket is worth may impact if you think paying extra for the registered mail is worth it. However, if you don’t use registered mail and something happens they will tell you you’re out of luck for not following the instructions. Whichever mail you use, it is a good idea to also make a copy of your winning ticket.

Taxes Withheld Upfront

Unlike many other types of gambling, the sportsbook does not hand you a W-2G tax form every time you come through with $600 or more in profit off one bet. It is way too difficult thus time consuming for them to stay on top of how much each person has bet. You can bet $11,000 on a game to win $10,000, succeed, and still be down thousands on the day. How would you feel if you went to collect your $10,000 win on a day you are still losing only to have them hand you a form to fill out for Uncle Sam’s share?

This is the issue for numerous other table games in the casino. If someone brings $5,000 in chips to the cashier they don’t know if you are up or down. If you win money from gambling you are “supposed” to report the earnings to the IRS as taxable income. But seeing as this is all operating on the honor system, the IRS obviously understands there is a ton of unreported income they are not going to know about since everything is settled in cash and the casinos paying out the winnings don’t have any records of who won and lost.

Gambling would certainly be a far less exciting hobby and profitable business if the casinos started breathing down their customer’s neck over every penny of how much they were up or down. It would feel like a hassle if gamblers were required to have a player’s card that they were also required to give to be swiped in every time they start playing a game.

How Do Betting Payouts Work

Going through all that red tape would take some of the buzz out of gambling. The thrill of gambling is its impulsiveness. Having the action fly and money passed around with no concerns as to getting into the game, how you will collect, and who is watching. This isn’t to make the argument you shouldn’t have to pay taxes on your winnings, but it’s good that it’s not really enforced in a lot of areas because doing that would take away a lot from what it is.

The standard for something like a lottery or a horse race bet is you must win $600 or more and have that also come from a bet where the odds were at least 300 to 1. There are very few sports bets available that offer odds of 300 to 1. If you did place a $10 bet and 300-1 and nailed it for the $3,000, then you can expect to be given a W-2G form.

What To Do If You Lose Your Ticket

At the time you place the bet, there are some precautionary measures you can take to give you an out in case you do lose the ticket.

If you hand the betting agent your player’s card they can swipe it before you place the bet. The betting information will go on your card as proof you made this bet on this day. If you lose the ticket, you can still cash it in. The only catch is if someone finds your ticket and cashes it in before you could prove it was yours and you lost it with your player’s card, unfortunately you are out of luck.

At the bottom of each ticket are a bunch of numbers. This is the transaction number for your bet. Writing these numbers down serves as a backup if you misplace the ticket. With this information, you can go to the sportsbook and they will hand you a lost ticket form. From there, it would take about 60-90 days to be resolved at which time you would receive a check in the mail. None of this can be done over the phone.

Tax Day is right around the corner, and sports wagering winnings should be part of a bettor’s annual filing.

Nathan Rigley, a lead tax research analyst at H&R Block, spoke with TheLines.com to offer advice for bettors making preparations for 2018 and beyond.

The first thing to realize is that any winnings are taxable and bettors should include it on a tax return.

“Just because a taxpayer doesn’t receive a tax form, (it) does not make the winnings tax-free,” he said. “Taxpayers still have a responsibility to report their prize on their tax return as ‘other income.’”

Don’t neglect to report it

Don’t be caught unaware. No matter the amount, gambling winnings are taxable. Those winning a substantial amount are likely to receive a tax form, and the IRS will also receive that form.

Those winnings will usually be reported via form W-2G or 1099-Misc. The IRS will then compare the information to the taxpayer’s return. Not reporting can be costly, triggering penalties and interest.

“Failing to report the prize as income is the surest way to get audited,” Rigley said.

That could certainly be uncomfortable and cause the type of scrutiny most bettors would like to avoid.

Record keeping 101

Serious bettors must not only be savvy with betting lines, but also with record keeping. The IRS advises gamblers to keep an accurate diary or record to substantiate wins and losses on a tax return.

Plan to keep track. A little extra work can pay big dividends in the long run. Rigley recommends bettors include the following in their records:

• The date and type of each wager.
• The name and location of the bet.
• The names of other people with the bettor at the betting establishment.
• The amount won or lost.

Bettors should also keep verifiable documentation of losses, which include:

• Wagering tickets
• Canceled checks
• Credit card records

Mobile wagering makes keeping track of wagers much easier. Players should have easy access to bets made throughout the year. That helps in reporting overall wagering income.

Track those wins and losses

Bettors should keep track of their winnings, but also their losses. If they won big and show a profit for the year, they can offset winnings with losses to help lower a tax burden.

Only winners can deduct losses, and the full amount of winnings and losses must be reported when filing. However, Rigley notes that gamblers may deduct losses, but only by as much as they report in winnings.

For example, suppose a taxpayer entered two betting pools: One at the office and one among friends. Both had a $10 entry fee, and the player won $100 from the office pool. The bettor should report $90 in winnings, deducting the $10 fee.

For itemizing, the entry fee from the losing pool and other gambling losses could be taken as an itemized deduction. That would be capped, however, at a maximum of the amount won being reported, in this case, $90.

Do the new tax laws have any impact?

Taxpayers will notice some changes when filing this year. The Tax Cuts and Jobs Act changed many aspects regarding itemized deductions. That includes the elimination of some deductions that were subject to a 2% floor of adjusted gross income.

“This has been impactful for many taxpayers,” Rigley said. “Luckily, the deduction for gambling losses, though a miscellaneous deduction, was not subject to this floor.”

This is advantageous to gamblers. They can continue to claim gambling losses as an itemized deduction to the extent of their gambling income.

Sports betting as a full-time job

The majority of bettors may fall into the recreational or hobby group. But those who bet professionally as their sole means of earning a living have different benefits and requirements.

These bettors would need to file as a business with a Schedule C form.

Filing as a business allows deducting expenses, but also subjects them to self-employment tax and possibly quarterly estimated payments. It’s as if that bettor runs his or her business and files accordingly.

Pay Out Sports Betting

The new tax laws have had some changes on this aspect, however. Bettors can no longer deduct non-wagering business expenses in excess of net wagering income. Thus, reporting a loss as a gambler isn’t possible.

Planning for next year

The new sports betting landscape has brought many more into the wagering ecosystem. Players new to betting may want to start planning for filing their 2019 taxes.

Pay Out Sports Betting Games

Rigley strongly advises maintaining detailed gambling records.

Pay Out Sports Betting Money

“The foundation of any tax return is one’s records,” he said. “In order to ensure the best outcome on the tax return, you have to make sure you can back up anything reported on your return, including the reporting of inherently personal activities like gambling.”

And if you do make a nice score, Rigley suggests making that first check to the tax man.

Set aside an estimated payment on taxes you’ll owe on those winnings.

Legal Sports Betting In Maryland

“This is essentially a deposit toward your tax liability,” he said. “The reason we suggest this is that it helps to avoid any underpayment penalties for failing to deposit enough taxes throughout the year. And, psychologically, it seems easier to write that check when the income is new rather than be hit with the balance due down the road when the return is filed.”

Sports Betting Lines

Here’s hoping that big win comes, though bettors should plan on paying Uncle Sam.