I found this answer very helpful. I have recently started online sports gambling in 2022 and I deposited I bet $1,000 and won $3,500. I did this all on draftkings, and have a current account value of $3,500 on draftkings. Therefore I have profited $2,500. I am concerned to withdraw the money with PayPal because I've heard of the outrageous tax circumstances people have gotten into. But based on what you're saying, should I receive a W2G from draftkings saying I made $2,500 and a 1099-K from PayPal saying I made $3,500. Based on the information you provided, shouldn't I be able to withdraw with PayPal and not be taxed on both the $3,500 and the $2,500?
