BALTIMORE – Mobile sports betting took off in Maryland a month ago, and it’s already brought in a lot of money for the state.
A little over a month, bEditors in Maryland fired away bets from their mobile devices.
The hard truth is that most bettors don’t win money, but if you’re someone out there who does, it’s important to remember that the state of Maryland counts sports betting winnings as taxable income.
“The sooner you deal with it, the sooner you’ll be ready for next year,” tax expert JP Krahel told WJZ.
Bettors were officially allowed to play sports events on mobile devices in Maryland starting November 23rd.
Maryland Lottery and Games November earnings report illustrated just how big mobile sports betting could be for the state.
According to the report, more than $186 million was wagered by mobile sportsbooks in Maryland.
And that’s just nine days of live mobile betting in Maryland in November.
When tax season is on the horizon, those winnings count as taxable income.
“The organizations that contribute to it, they have to register as well,” Krahel said. “They’re going to report what you did, so you can’t ignore it.”
Your sports betting losses can also help you this tax season if you’ve been keeping track.
“If your itemized deduction, if that total, including gambling losses, exceeds the standard deduction, I’d rather take that itemized amount because it will lower my tax liability,” Krahel said.
Sports betting winnings are subject to the state’s progressive income tax structure, which taxes higher earners more.
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