Stunning Growth of Sports Betting

[ExFlyBoy5]

Sports=Money. And a LOT of money. It amazes me at how much people spend on sports in general.

We go to an occasional AAA baseball game and while the tickets are generally $15 or less, the food and drinks are ridiculously priced. A fella I went to HS with has season tickets to the ATL Braves and the Falcons and has admitted that he has spent well over $20K for that "privilege." Hey, to each their own, right?

 

[Koolau]

Sports=Money. And a LOT of money. It amazes me at how much people spend on sports in general.

We go to an occasional AAA baseball game and while the tickets are generally $15 or less, the food and drinks are ridiculously priced. A fella I went to HS with has season tickets to the ATL Braves and the Falcons and has admitted that he has spent well over $20K for that "privilege." Hey, to each their own, right?

Yeah, talk about inflation!

 

[Car-Guy]

I'll say upfront, I'm not an expert on sports betting tax laws but I believe there maybe some special federal tax rules for sports betting.... Probably some unique state tax rules too. But maybe not....

However, in general, I believe sport betting winnings are considered personal income just like table game or slot machine winnings in a casino... Of course on your federal tax return, you can deduct your casino losses to offset your winnings. (I assume the same applies to sports bets?) So you may not actually owe any gambling taxes, "if you lost more than you won". Note, there are very specific tax record keeping/accounting rules to keep track of winnings and losses... Oh, and to deduct your losses, you must itemize..

I'm sure everyone who wins any money gambling reports it on their tax returns...Right?

Now, for folks on medicare, if you gamble for bigger bucks, you can easily fall into the IRMMA trap. All of your gambling winnings are considered "income" and is added to whatever other income you have for the year. That affects your MAGI. That's before you can deduct your losses so you can easily hit the IRMMA brackets if you gamble for bigger bucks......


Simple.

 

[dmpi]

I'll say upfront, I'm not an expert on sports betting tax laws but I do believe there are some special federal tax rules for sports betting.... Probably some unique state tax rules too. Maybe not....

However, in general, I believe sport betting winnings are considered personal income just like table game or slot machine winnings in a casino... Of course on your federal tax return, you can deduct your casino losses to offset your winnings. (I assume the same applies to sports bets?) So you may not actually owe any gambling taxes, "if you lost more than you won". Note, there are very specific tax record keeping/accounting rules to keep track of winnings and losses... Oh, and to deduct your losses, you must itemize..

I'm sure everyone who wins any money gambling reports it on their tax returns...

Now, for folks on medicare, if you gamble for bigger bucks, you can easily fall into the IRMMA trap. All your winnings are consider "income" and is added to whatever other income you have for the year. That affects your MAGI. That's before you can deduct your losses so you can easily hit the IRMMA brackets if you gamble bigger bucks......


Simple.

Your post almost seem to addressed to me personally.

We made money in the stock market so you can often find us at the casino playing the slots. We've never had a winner year yet but it's quality time that we enjoy.

The fact that you have to itemize to claim a gambling loss is a costly fact. The standard deduction is $24,000 for married couples. SALT deductions will only cover $10,000. So we need $14,000 of jackpot loss to even reach the threshold of itemizing. It's easy to lose $14,000 but the kicker is you need to win $14,000 of jackpots because only wins offsets losses. In a typical year we get about $20,000 worth of jackpots which me we can only claim $20,000-$14,000 = $6,000 of loss. Still good though. Other people might have other deductions that can get them closer to the itemize threshold. You have to figure it out.

Next year IRMMA comes into play for me and I consider it 'game over'. The last thing you need is a jackpot that pushes you over the IRMMA tier level.

 

[Car-Guy]

^^^^^


Typo in my posting above.... It's IRMAA (not IRMMA)

Anyway, it's not that I mind hitting the first IRMAA tier due to gambling... That's only another ~$60mo or ($120 for a couple). Its hitting the top tier that bothers me which is another ~$350mo or ($700 a couple).... Don't ask!

 

[Koolau]

^^^^^


Typo in my posting above.... It's IRMAA (not IRMMA)

Anyway, it's not that I mind hitting the first IRMAA tier due to gambling... That's only another ~$60mo or ($120 for a couple). Its hitting the top tier that bothers me which is another ~$350mo or ($700 a couple).... Don't ask!

First World problems, sigh, First World problems. Doncha just love 'em!

 

[Koolau]

I'm sure everyone who wins any money gambling reports it on their tax returns...Right?

Yeah, I keep expecting the IRS to kick in my door wanting their share of all those "coffee bets" I won back in the day at Megacorp. Those were good days to bet on my Alma Mater. Now, not so much.

 

[jollystomper]

Sports betting is as old as sports. It was never any secret. The newspapers always printed the spreads and the odds even though nobody outside of Vegas could legally wager on a game. Jimmy the Greek made a career out of predicting the games and setting the spreads and he was featured on network TV doing so.

So true. In my high school and college there were classmates running or fronting betting rings where you could bet on games.

A couple of days ago, Sloane Stephens the 2017 US Open Tennis champion posted screen captures of the vile posts sent to her Instagram account by men who bet and lost on Sloane's match with Angelique Kerber. Sloane lost and apparently cost these idiots money.
.

That is sad. Unfortunately it happens more often than is publicized. I will not to shocked to see stories of athletes accosted (or worse) by disgruntled folks who lost a lot of money (thinking back to Andres Escobar in the 1990s).

Growing up there was a lot of betting on games just played on the playgrounds, and it was not unusual to see fights between the betters and the players they bet for or against. If I was in a pickup game, usually basketball or football, and other players suggested betting on the game to "make it interesting", I would refuse to play. Those games can become a whole different level of brutal - both during and after - when money is on the line.

While I play fantasy football (free) and that helps spur my interest in a lot of the football games, I could not watch a game with real money on the line. I find that more pressure filled than exciting. I have watched games with folks who have large (in my view) sums riding on the games, and it has rarely been pleasant when they lose.

 

[Midpack]

A couple of days ago, Sloane Stephens the 2017 US Open Tennis champion posted screen captures of the vile posts sent to her Instagram account by men who bet and lost on Sloane's match with Angelique Kerber. Sloane lost and apparently cost these idiots money.

That’s the most disturbing aspect of sports betting to me, and it happens in all sports. No one is insulated from idiots with social media today, athletes have contractural obligations they have to meet so they can’t escape.

 

[Koolau]

That’s the most disturbing aspect of sports betting to me, and it happens in all sports. No one is insulated from idiots with social media today, athletes have contractural obligations they have to meet so they can’t escape.

For many, the introduction of money into the equation brings out passions that should be saved for more appropriate outlets. It's too bad that social media makes it possible to display these passions in such offensive ways.

 

[phil1ben]

The FIRE way for gambling is to invest into the gambling stocks, not the gambling itself


examples: GAN, GNOG, DKNG, WYNN, GMBL, to name some

Don't forget GENI