According to a new survey, 79% of Americans have placed or plan to place a sports bet as the activity becomes more common and frequent than ever.
Those involved within the study included 750 respondents aged between 18 and 64, with more than half of the respondents (54%) saying they place bets a few times a year, with another 30% betting weekly during specific sports seasons.
The survey has been conducted by tax software provider TaxAct, who suggest that most bettors aren’t clear on the tax rules.
“Despite sports betting‘s explosive growth, awareness of how it impacts taxes is low, and misconceptions are common,” the company states in a press release.
“Only 18% of respondents knew that all winnings must be reported to the IRS, and just 25% correctly identified sports betting winnings as taxable income.
“Even fewer — 10% — were aware that losses can be claimed as an itemized deduction, and 11% knew the tax rate on gambling winnings can reach up to 37%.
“Perhaps most concerning, only 2% of respondents were able to correctly identify all these statements as true.”
American sports betting winnings are fully taxable
In the United States, the Internal Revenue Service (IRS) considers all gambling winnings to be fully taxable regardless of the activity. It includes cash winnings and the fair market value of prizes, like cars and trips.
The other results within the survey show that 30% of respondents bet for the thrill of it, and 25% said betting makes watching sports more exciting.
Social drivers were found to be strong too, with 17% saying they enjoy the competitive aspect, while 12% use betting to connect socially. Only 16% of people surveyed said their primary goal is earning extra income.
This comes after the American Gaming Association’s annual report issued in February showed that the sports betting industry posted a record $13.71 billion in 2024 revenue which is up from the 2023 record of $11.04 billion.
Featured Image: AI-generated via Ideogram
