Florida sports betting sites may be popular with bettors trying to place their wagers online, but what many forget—or simply ignore—is what happens when you win. Specifically, what happens with your taxes. If you’re betting and end up taking home a profit, even from sites that operate in a legal gray area or are based offshore, the IRS wants to know. There’s no special exemption just because you live in Florida or because the site wasn’t technically local. Money earned is money taxed. And the government doesn’t play games when it comes to gambling income.
Let’s walk through the reality of what you owe, when you owe it, and what documents and responsibilities come with placing sports bets while you’re physically in Florida. There are no surprises here—just rules you need to know so you don’t get burned at tax time.
Gambling Winnings Are Taxable—Period
It doesn’t matter where you placed your bet. If you won money gambling—whether from sports betting, casino play, poker, or even a fantasy contest—you’re supposed to report it on your federal tax return. The IRS classifies all gambling winnings as taxable income. That means winnings from Florida sports betting sites are no exception.
This includes traditional sportsbooks, mobile betting apps, and even unregulated or offshore websites. Even if a site doesn’t send you a tax form, you’re still on the hook to report the income. Ignoring it just means you’re risking penalties and audits. The federal government expects to see that money included in your annual income when you file your taxes.
Reporting Sports Betting Winnings
If you win big, which is considered $600 or more, many sportsbooks will issue you a W-2G form. This form is given to you, as well as the IRS. It states the amount of your winnings and whether some of your federal taxes were withheld at the time of payment.
But here is the most surprising part. Even if you don’t meet the W-2G threshold, you are still supposed to report smaller wins. The IRS needs to have the complete picture of your income, and all winnings from gambling must be reported, even if no form is issued.
You report the winnings on a Form 1040 on Schedule 1, under “Other income”. Along with that, you can also report any federal tax withheld, if applicable. Not reporting the winnings and getting caught later, for example, through a matched W-2G form, means paying penalties and interest.
Deducting Gambling Losses
Let’s take a look at some good news. Losses from gambling can be deducted, but only if you itemize your deductions. For those opting for a standard deduction, this loss won’t be accounted for.
Losses are deducted up to the amount of your reported winnings. So if you won $5,000 but lost $7,000 total over the year, you can only deduct $5,000 in losses to zero out the winnings—not claim a $2,000 loss to reduce your income elsewhere.
Indeed, records are needed, are they not. Recollections, receipts, tickets, statements from banks, or digital account statements outlining the wagers and losses. Documentation may be required during an audit.
State Income Tax Considerations in Florida
This is where Florida gives you a break. Florida does not have an income tax. Unlike residents from California, New York, or any other states with an income tax, Florida bettors only have to deal with federal taxes.
This does not completely free you from obligations if you bet outside Florida, though. If you go to other states where sports betting is allowed, placing a bet in person there may mean that state tries to collect a portion of your profits. It’s rare unless it’s a large amount, but it is possible. Every state has its own rules.
If you only bet while you are in Florida—whether you are traveling and accessing the internet from overseas—then your only concern is federal taxes.
The Role of Offshore Sportsbooks and Apps
Most betting done from Florida is still through offshore sportsbooks or mobile apps that aren’t regulated in the U.S. Technically, these sites aren’t legal under federal law, but they continue to operate in a gray zone where enforcement is minimal for individual users.
Regardless of the site’s legal status, any money you win through these platforms is still taxable. The IRS doesn’t care whether the platform is regulated—they only care about the money. If you withdraw winnings to a U.S. bank account, or use them to purchase goods and services, they’re fair game for taxation.
That said, because offshore sites rarely issue W-2G forms or automatically withhold taxes, it’s on you to keep accurate records. Many bettors fail to track their earnings and end up in a mess at tax time.
Some people who use online sportsbooks in Florida believe they’re flying under the radar, but ignoring your obligations is a risk. Keep records, know your totals, and report the income correctly.
Self-Employment and Estimated Taxes
If you’re a casual bettor, you’ll probably just report winnings on your annual tax return and move on. But if you bet frequently—and especially if you rely on it for income—you may need to pay estimated taxes throughout the year.
Gambling winnings aren’t automatically subject to Social Security or Medicare taxes, so they aren’t treated like self-employment income unless you’re a professional gambler. However, if your betting income is substantial and consistent, the IRS may scrutinize your status.
In most cases, though, regular bettors won’t need to file as self-employed. Still, if you’re winning large amounts and no tax is being withheld, it’s a good idea to pay estimated taxes quarterly. It helps you avoid underpayment penalties when April rolls around.
Cryptocurrency and Sports Betting Winnings
Some Florida sports betting sites or apps allow you to bet or cash out in cryptocurrency. That adds another tax wrinkle.
If you receive crypto as winnings, it’s treated as income at the market value of the coin at the time of receipt. Then, if you hold the crypto and it gains (or loses) value, that’s a separate taxable event when you sell it or exchange it.
So there are potentially two taxable moments: when you win, and when you later trade or sell your crypto. That’s a headache if you’re not tracking values closely.
Document Everything—Even Small Bets
The safest move is to keep a log of your betting activity. That includes wins, losses, deposits, withdrawals, and the source of each bet. Some people use spreadsheets. Others rely on account statements from their betting apps. Whatever method works, consistency is key.
This kind of documentation isn’t just for tax reporting. It’s also your best defense in case the IRS asks questions. Without records, it’s your word against theirs, and that rarely ends well.
Frequently Asked Questions
Q: Do I owe taxes on small sports betting winnings?
A: Yes. Even $50 in winnings is technically taxable and should be reported on your federal tax return.
Q: Will I get a W-2G form from offshore sportsbooks?
A: Usually not. Offshore sportsbooks rarely send tax forms, but you still have to report all winnings.
Q: Can I deduct my losses if I take the standard deduction?
A: No. Gambling losses can only be deducted if you itemize your deductions.
Q: Is a Florida Sports Betting Promo Worth It?
A: It can be, especially for reducing your upfront risk. But Florida sports betting promos are still subject to taxes if they result in real winnings.
Q: Do I have to pay taxes if I withdraw crypto from a sportsbook?
A: Yes. Crypto winnings are taxable both when received and again when sold or traded, depending on value changes.
Wrap-Up: Don’t Let a Win Turn Into a Tax Problem
Winning a sports bet feels good. Getting hit with a tax bill because you didn’t handle it right? Not so much. If you’re placing bets from Florida—whether using offshore sites or mobile platforms—you still have responsibilities. Winnings are taxable. Records matter. And ignoring the rules could cost you more than what you won.
Tax law isn’t flexible just because the legal landscape of sports betting in Florida is murky. The IRS isn’t concerned with how or where you placed your bet. They care about the result. Keep your records, stay honest, and treat gambling winnings like any other income. If you don’t, the real gamble could come at tax time.
Hilbert Mayer
Sports Writer
Hilbert Mayer is a professional sports writer, betting analyst, and content strategist with over 15 years of experience in the sports industry. Before focusing on sports betting analysis and handicapping, Hilbert worked as a sports writer for various news outlets, covering everything from game recaps to in-depth matchup features. Today, he specializes in MLB, NFL, March Madness, and UFC betting, combining his journalistic background with deep statistical expertise and real-world betting insights. His proven track record, sharp reads, and ability to break down complex matchups make him a trusted voice among both casual bettors and seasoned sharps.
Published on: July 29, 2025
Last updated: July 28, 2025