US Taxation of Gambling Winnings and Incentives to Bet

Sports betting is growing rapidly in the US after its legalization by the Supreme Court in 2018. This paper describes the treatment of gambling winnings and losses in the federal tax code and shows how the system may incentivize some gamblers to substantially increase the scale of their betting in o...

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Detalles Bibliográficos
Autor principal: Whelan, Karl
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Springer US 2023
Materias:
Original Paper
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10397120/
https://www.ncbi.nlm.nih.gov/pubmed/36773163
http://dx.doi.org/10.1007/s10899-023-10189-z
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author Whelan, Karl
author_facet Whelan, Karl
author_sort Whelan, Karl
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description Sports betting is growing rapidly in the US after its legalization by the Supreme Court in 2018. This paper describes the treatment of gambling winnings and losses in the federal tax code and shows how the system may incentivize some gamblers to substantially increase the scale of their betting in order to have a chance to win. This incentive stems from the fact that gambling losses can only be deducted if taxpayers are filing for itemized deductions, meaning the scale of gambling losses has to be large enough to push a taxpayer’s eligible deductions over the standard deduction. This incentive to engage in large-scale betting applies mostly to lower and middle-income households.
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spelling pubmed-103971202023-08-04 US Taxation of Gambling Winnings and Incentives to Bet Whelan, Karl J Gambl Stud Original Paper Sports betting is growing rapidly in the US after its legalization by the Supreme Court in 2018. This paper describes the treatment of gambling winnings and losses in the federal tax code and shows how the system may incentivize some gamblers to substantially increase the scale of their betting in order to have a chance to win. This incentive stems from the fact that gambling losses can only be deducted if taxpayers are filing for itemized deductions, meaning the scale of gambling losses has to be large enough to push a taxpayer’s eligible deductions over the standard deduction. This incentive to engage in large-scale betting applies mostly to lower and middle-income households. Springer US 2023-02-11 2023 /pmc/articles/PMC10397120/ /pubmed/36773163 http://dx.doi.org/10.1007/s10899-023-10189-z Text en © The Author(s) 2023 https://creativecommons.org/licenses/by/4.0/Open AccessThis article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article's Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article's Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/ (https://creativecommons.org/licenses/by/4.0/) .
spellingShingle Original Paper
Whelan, Karl
US Taxation of Gambling Winnings and Incentives to Bet
title US Taxation of Gambling Winnings and Incentives to Bet
title_full US Taxation of Gambling Winnings and Incentives to Bet
title_fullStr US Taxation of Gambling Winnings and Incentives to Bet
title_full_unstemmed US Taxation of Gambling Winnings and Incentives to Bet
title_short US Taxation of Gambling Winnings and Incentives to Bet
title_sort us taxation of gambling winnings and incentives to bet
topic Original Paper
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10397120/
https://www.ncbi.nlm.nih.gov/pubmed/36773163
http://dx.doi.org/10.1007/s10899-023-10189-z
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