How Much Tax Will I Have to Pay Placing a Sports Bet Online in NJ?
The tax one will have to pay for betting on sports in New Jersey via apps or online will be a sick 13%. Obviously, in this regard, the internationally-licensed sportsbooks (often referred to as "offshore books") will enjoy a tremendous advantage as they do not tax sports bettors at all.
Likewise, local bookies won't tax sports bettors. Whether it's by offshore books, locals or the apps, Gambling911.com encourages sports bettors to always claim their gambling winnings, just not 13% if you can avoid it.
While in New Jersey, Gambling911.com's Chris Costigan spoke to individuals who loved the Draftkings app but were unaware of the tax consequences, which are steep.
For example, if you were to win $5000 on the year, you'd be paying $650 to Uncle Sam. It's less at the counters in any of the state's new sportsbooks: 9.75%.
Offshore sportsbooks will never report your winnings to the IRS. NJ-based sportsbooks will.
Needless-to-say, when the local CBS affiliate in Northern New Jersey approached folks with this news, most said they would stick with their bookies versus having to pay a 13% tax.
Adding insult to injury, offshore sports betting firms like BetPhoenix advertise bonus money up to $1500.
- Mary Montgomery, Gambling911.com
