'You can't ignore this': Sports betting winnings count as taxable income
BALTIMORE - Mobile sports betting went live in Maryland a little over a month ago and it has already brought in big money for the state.
For a little over a month, bettors across Maryland have been firing away bets from their mobile devices.
The hard truth is, most bettors don't win money, but if you are someone out there who has been winning, it is important to remember that the state of Maryland counts sports betting winnings as taxable income.
"The sooner you get on this the sooner you'll be ready for next year," tax expert JP Krahel to WJZ.
Bettors were officially allowed to gamble on sporting events with mobile devices in Maryland starting on Nov. 23.
Maryland Lottery and Gaming's November revenue report painted a picture of just how big mobile sports betting could be for the state.
According to the report, mobile sportsbooks in Maryland saw more than $186 million in bets.
And that is just from the nine days mobile betting was live in Maryland in November.
With tax season on the horizon, those winnings count as taxable income.
"The organizations that facilitate this, they've got to keep records too," Krahel said. "They're going to be reporting what you made, so you can't ignore this."
Your sports betting losses may also help you out this tax season if you have been keeping track.
"If your itemized deduction, if that total, including gambling losses, exceeds the standard deduction, I'd rather take that itemized amount because it's going to reduce my tax obligation," Krahel said.
Sports betting winnings are subject to the state's progressive income tax structure that taxes higher earners the more.
