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Unless you are betting with an offshore sportsbook or through a local bookie, the amount of tax you'll need to pay wagering on sports in the state of Illinois could be quite hefty.
Sports bet winnings over $600 are subject to a 15% tax rate in Illinois while casinos in Illinois typically withhold 25% of winnings for federal tax purposes.
If you live in Cook County, home of Chicago, it gets even worse. An additional 2% tax rate will be tacked on.
The sportsbooks you use will also be reporting those winnings to the IRS. This is one of the benefits of playing with sites still accessible within Illinois but are based outside the US. They do not report your winnings. Many are more established than the state-based books. BetOnline, for example, is considered one of the largest online sportsbooks and has been around since 1999.
Players are able to deduct amounts wagered and lost — but may not deduct wagers on winning bets.
- Ean Lamb, Gambling911.com
