NFL Season Starts As More States Offer Legal Sports Betting. Heres How Winnings Are Taxed

(CNBC) Sarah OBrien Sep 5 2019 1:19 PM If youre among the estimated 38 million adults expected to bet on NFL games this season remember that good ol Uncle Sam expects a piece of your winnings and in some cases will grab a slice without asking first. The NFLs 100th season which kicks off Thursday night on NBC in a game between the Green Bay Packers and the Chicago Bears comes as a growing number of states are legalizing sports betting. That means your win could be subject to taxation even before it reaches you depending on how big it is. If you win money through unregulated channels youre expected to fess up to the IRS at tax time. The way it works is that any income from gambling is taxable income" said Cari Weston a CPA and director of tax practice and ethics for the American Institute of CPAs. Its taxable regardless of how much you won or where you won it." Since the Supreme Court overturned a federal law in May 2018 that had banned sports betting in most places the number of states that have legalized it has risen to 13 according to the American Gaming Association. Five more states and the District of Columbia are poised to start legal markets in the coming months. About 7 million people say theyll bet legally on NFL games this season at a casino sportsbook up 1.2 million from last year. The remainder will place wagers with friends participate in pools and other contests or bet online.