How are sports betting promotions, like free bets and deposit matches, taxed?
If I bet $100 and win $300, I know I claim $300 as a win and offset the $100 wager as a loss.
Sportsbooks are offering many and varied promos that complicate the basic model presented above. I’m looking for any insight. Here are a few examples of kinds of promos I’ve run into:
1) Simple deposit match. For instance, deposit up to $1000 and be matched in your account 100% up to that amount. Is that taxable? It isn’t a “winning” per se.
2) $100 free bet promo, win $200 (claim $200 as win, no loss offset?)
3) $100 free bet promo, lose (nothing?)
4) $500 risk free bet offered. Lose first. Free bet credited for $500. Win second bet for $400. Net -$100.
Thanks!
CC
