W-2G forms are based on your aggregate wins and losses over a 24-hour period, rather than an annual basis. Wins of $5,000 and greater are taxable immediately and taxes must be withheld by the bookmaker.Sports betting wins of at least $600 but less than $5,000 are taxable, but no tax is withheld by the bookmaker.

In certain circumstances, sportsbooks and casinos are legally required to issue these forms and withhold 24% in federal taxes, and report these winnings to the IRS: You may also need to complete Form W-2G, which is used to report gambling winnings and tax withholdings. The amount of tax you’ll have to pay is based on your overall taxable income.

You’ll need to declare your sports betting winnings on your annual tax return, specifically within ‘Other Income’ on Form 1040. Off the bat, bettors should know that gambling wins are fully taxable - whether it’s sports betting, casino games, lotteries, scratchcards, or any other form of gambling.