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However, if you win money, you will be expected to pay federal income tax on your winnings, providing you meet specific requirements. Unfortunately, gamblers throughout the US are expected to pay federal income tax on all winnings. The amount you end up paying in federal taxes depends on how much you earn throughout the year. Individual states will also usually tax winnings themselves, although the amount they tax is much less than that charged by the federal government. The state where the bet was placed usually charges the tax, not the state where the gambler resides.

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WATCH RELATED VIDEO: Gambling Taxes Explained - Sports Betting

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American Moneymakers: The Future of Online Poker After PASPA

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bitcoin avoid taxes fanduel

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