If You Win a Sports Bet, How Can You Get Paid?
Once the federal ban on sports gambling was overturned earlier this year, states have been scrambling to update their betting laws. While not all states are adopting open sports betting, those that are must put regulations in place governing everything from betting locations and wager limits to, of course, how winners get paid.
And if you're used to the old, buy and ticket, wait for the result, turn the ticket in method used in Vegas sportsbooks, the laws may be a little different in your state.
Place Your Bets
Many states require gamblers to place bets through brick-and-mortar casinos or sportsbooks, or at least appear in person at one before gambling online. In Nevada, bettors must show up in person at a casino with a valid ID to prove they are legally of age before they can place bets online or in person. The same is true for Mississippi, where bettors can use online apps, but only while physically present at the casino. While New Jersey allows gamblers to register online to place bets, however, any wager over $10,000 must be placed in person at a casino.
Collect Your Winnings
States can also vary when it comes to cashing out your winnings. Sites like DraftKings and FanDuel, which are licensed to operate in Nevada and New Jersey, allow bettors to withdraw their earnings through either PayPal or a check. But some bets have to be collected in person. In Delaware, for instance, football parlays that win more than $600 must be cashed at one of Delaware's three sportsbooks or the Delaware Lottery office in Dover.
Pay Your Taxes
How much you'll owe the state revenue office on those winnings will also depend on where you place your bets. Delaware statutes stipulate that any winnings over $600 and more than 300 times the initial wager is subject to taxes, while Mississippi residents are not required to report in-state gambling winnings on their state income tax return.
So, before you go gambling on sports and spending the winnings, you may want to check with a local attorney about your rights and responsibilities when it comes to sports betting.
Related Resources:
- Find Gaming Lawyers Near You (FindLaw's Lawyer Directory)
- Update on State Sports Betting Laws (FindLaw's Tarnished Twenty)
- 3 More States Trying to Legalize Sports Betting (FindLaw's Tarnished Twenty)
- Is California Going to Legalize Sports Gambling? (FindLaw's Tarnished Twenty)
