The Kansas City Chiefs failed in their quest for a historic three-peat, losing to the Philadelphia Eagles in Super Bowl LIX, 40-22.
The game was on February 9, 2025, at the Ceasars Superdome in New Orleans, Louisiana. Kevin Burkhardt handled play-by-play, with Tom Brady as the lead NFL analyst.
Kendrick Lamar headlined the Super Bowl LIX halftime show, with SZA joining as a special guest.
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But…If you're one of the millions who bet on Super Bowl 59, it's important to remember that taxes are unfortunately involved. So, with tax season 2025 officially underway, here's what you need to know about how your Super Bowl bet could impact your tax bill.
Super Bowl 2025: Record-breaking bets
The American Gaming Association projects a record $1.39 billion in legal wagers for this year's Super Bowl, an 11.2% increase from last year.
In a release, AGA president and CEO Bill Miller said the following:
“No single event unites sports fans like the Super Bowl, and that excitement extends to sports betting, with this year's record legal handle reflecting its widespread appeal. This figure underscores the positive impact of the legal market—from protecting consumers to generating tax revenue that benefits communities across the country—while enhancing the game experience for all.”
States with legal sports betting
Legal sports betting has expanded in the last few years mainly due to a 2018 U.S. Supreme Court decision that allowed states to decide whether to legalize sports betting.
Now, the District of Columbia and most states allow some form of online sports betting, while another nine states only allow retail sports betting.
Sports betting is illegal in Alabama, Alaska, California, Georgia, Hawaii, Idaho, Minnesota, Oklahoma, South Carolina, Texas, and Utah.
Note: Georgia and Texas could consider sports betting legislation this year and Missouri recently legalized sports betting through an amendment passed during the November elections.
Super Bowl bet winnings
If you are one of the millions who placed a bet on this game or last year, you need to know that the IRS considers sports betting to be gambling. And income from gambling winnings is taxable.
It doesn’t matter if those winnings come from sports betting online, from the casino, or as a result of a big Powerball lottery jackpot win. The IRS expects you to report your winnings on your federal income tax return.
- Usually, the payer (e.g., the casino, the state lottery, the online sportsbook, etc.) will issue an IRS Form W2-G.
- If your winnings exceed a certain amount in some situations, the payer will withhold 24% for taxes.
- But even if you don’t receive a Form W2-G, the IRS expects you to report income from your gambling winnings as “other income” on your Form 1040.
Can you claim gambling losses on your tax return?
Gambling losses are generally deductible on your federal income tax return, but only to the extent of your winnings and if you itemize deductions. If you take the standard deduction, which most taxpayers do, you can’t deduct your gambling losses.
In any case, keep good records. If you itemize, you should be able to show the IRS the amounts of your gambling winnings, your losses, dates, places, and payers associated with that gambling.
Remember that, like the federal government, most states tax income (including gambling winnings), although some states don't allow deductions for gambling losses. If you're unsure how to report gambling winnings and losses from the state you reside in, or from a different state, check with a tax professional when it's time to file your taxes.
By the way, you’ll report your winnings (or claim your losses) from Super Bow 2024 on the returns you file now in 2025 and your winnings or losses from Super Bowl 59 next year, in early 2026.
State gambling taxes, too...
When it comes to taxing gambling winnings, states have different approaches.
For instance, some states, like Nevada and Florida, don't touch your winnings since those are states with no income tax. Other states are more eager to get their share of your winnings. New York, for example, takes a hefty 10.9% of lottery winnings.
Recently, Ohio Gov. Mike DeWine proposed increasing the tax on sports gambling operators from 20% to 40%. The goal? To help fund a new football stadium for the Cincinnati Bengals and support youth sports programs. If approved, the proposal could bring in an extra $130 million to $180 million to the Buckeye State each year.
And that idea is timely, considering the Cleveland Browns are eyeing a massive $2.4 billion domed stadium in Brook Park. The proposal shows how some states may use gambling taxes to fund specific projects instead of merely putting those revenues into general funds.
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