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Stock impact report

Online Sports Betting Hits Missouri, Tax Bills Are Not Far Behind [Forbes]

DraftKings Inc. - Class A (DKNG) 
Company Research Source: Forbes
State to allow legalized sports betting, according to CBS Sports . While sports betting has grown into a form of entertainment for sports fans, many of those engaging in the activity may not be aware of the significant tax consequences associated with legalized sports gambling. This article discusses the tax rules for sports betting and some special considerations that Missourians should consider as they fire up their mobile phone apps and start making their bets. Sports Betting Taxation According to Section 61 of the Internal Revenue Code, all income is subject to income taxation from whatever source derived. This definition of income stretches from earned wages in a traditional job to finding $100 on the street. Inclusive in this definition is income earned from sports gambling. As I discussed in my Forbes contributor piece, taxpayers must pay taxes on all winning bets. However, the taxpayer can only deduct losing bets as itemized deductions. For instance, if a taxpayer wage Show less Read more
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