Super Bowl LX Gambling 2026: Expert Explains Tax Rules Every Winner Must Know

Group 1: Legalization and Public Support - Since the U.S. Supreme Court's 2018 decision, 38 states and Washington, D.C. have legalized some form of sports betting, with 75% of Americans supporting it in their home state and 90% viewing it as acceptable entertainment [1] Group 2: Betting Estimates - The American Gaming Association (AGA) estimates that Americans will legally bet $1.39 billion on Super Bowl LIX in 2025, with a projected record of $30 billion wagered during the season through legal U.S. sportsbooks [2] Group 3: Tax Implications - Income from gambling, including sports betting, is taxable according to the IRS, and all earnings must be reported on federal tax returns, regardless of the source [3][4] - Gambling income includes winnings from various sources such as lotteries, raffles, and casinos, and the payer is required to issue an IRS Form W-2G for winnings above a certain amount [4] - All gambling winnings are considered "other income" and must be reported on Form 1040, including both cash and non-cash prizes [5][6] Group 4: Reporting Requirements - There is no minimum threshold for reporting gambling winnings, although it may be challenging for the IRS to track informal bets among friends [7]