How Much Can You Win Sports Betting

Sports betting newbies often ponder the big questions of how sports betting could transform their lives. If you recently have started betting and have snagged a few nice wins, you might find yourself wondering,

• Sports Betting How To Guide
• How Much Do You Win In Sports Betting
• Is Sports Betting Worth It

• “How many dollars a day can I win betting on sports?
• How many dollars a month?
• How many dollars per year?
• Could I replace my main income?”

For online gambling winnings, the payer is required to send Form W2G only if the winner reaches the following thresholds: The winnings (not reduced by the wager) are $1,200 or more from a bingo game. It took you $1,100 to win $160, meaning you have to bet $6.87 to win $1 on average. So you see the small differences between a 52.4% winning rate and a 60% winning rate—inside those 7.3 percentage points. The percentage method varies the amount you bet depending on the confidence of the play. The more confident you are, the larger the percentage of your bankroll you should use. However, you should never bet more than 5%.

There are varied answers depending on a variety of factors. So, let’s go over some common questions and answers regarding how much you can earn betting on sports. These are all questions I have found people asking online.

There’s definitely dough to be won. How much dough exactly depends on many different things.

Q: How many dollars a day can I make betting on sports?

A: That depends on a lot.

Let me ask you some questions back: How much do you have in your bankroll? How much are you wagering on each of your bets? What odds are you wagering at? What percentage of your bets can you expect to win based on past performance? How many bets do you place during the course of a day? How large is your average win compared to your average loss?

If you have not yet thought through these questions (and more!) take some time to do so now. You will understand why there is no simple answer that I can give to the question, “How many dollars a day can I make betting on sports?”

Now, if you have answers to all of those questions, you might be able to hazard a guess. But since your statistics are all calculated from long-term data, you’ll need to come up with a longer-term estimate. You can then divide by the number of days to try and figure out on average how many dollars a day you might make.

But there can and will be significant up and down swings from day to day. So, how many dollars a day you can make in real terms will depend on the specifics of each day. You may be able to make more or less today than you can tomorrow.

Q: How do I earn $10 a day betting on sports?

A: Rather than asking how many dollars a day you can make on sports, maybe you have decided on another approach.

You have simply settled upon an amount you would like to make each day wagering, and want to know how to make it happen.

Although this may seem like a logical approach, even if the amount you are aiming for is reasonable given your bankroll, there are still issues with it that you should be aware of.

As discussed before, you might be able to aim for something like a $10 a day average return on your sports betting, but it will be simply that: an average.

That means that there will be days when you make more than $10, and others when you make less or nothing. Still on other days, you will have a net loss.

The reason for that is the simple fact that for an activity with significant risk, guarantees are impossible.

All you can do is lean on the long-term results of your strategies as borne out by statistical probability.

Further, if you hold yourself to the goal of earning a net gain of $10 a day, you will be setting yourself up for failure.

Because it is impossible to achieve, if you stubbornly keep trying, you will dig yourself further and further into a hole each day.

You’ll bet when you should have skipped, and will actually lose more money then you would have if you have never set such a goal in the first place.

So, stick with goals which are long-term gain nature. But even with those, be cautious before making a demand upon yourself that you achieve a certain dollar income within a certain amount of time.

Q: How much can I make in a year betting on sports?

A: This question is pretty much a variation on the first one about how much you can make a day betting on sports.

While it is good that you are thinking about the long-term, once again, there is a huge range of factors which can affect the answer.

Some people make a few hundred dollars a year on sports betting. Others make a few thousand. Still others make enough to quit their day jobs. Most, however, lose money betting on sports.

Sports Betting How To Guide

Q: How do I make a million dollars betting on sports?

A: This question is a variation on the one about making $10 a day betting on sports—just far more ambitious and focused on the long-term.

With the $10 a day question, I explained why thinking in terms of daily goals isn’t necessarily realistic. You cannot guarantee you will profit each day. And given the day-to-day realities of sports betting, you probably won’t.

But is there a way to guarantee you will make a certain amount over the course of a year?

On paper, you might be able to get your numbers to support this possibility—assuming you have the required bankroll.

But real life is complicated and unpredictable. Factors you did not expect to interfere can make it difficult or impossible to achieve what seemed to be a reasonable goal.

So, it is best not to try to force things. There are no guarantees even over the long-term.

Also, let’s talk about just how massive a bankroll you would need to make a million dollars a year wagering on sports.

For the sake of argument, let’s say that you did happen to make the same amount of money each day on average, adding up to $1 million at the end of the year.

You would have to make approximately $2739.72 per day.

That’s a lot of money you’d have to be making every day.

Now, consider that for long-term sports betting success, you need to be making small, regular wagers, gradually accumulating money over the course of each year.

It is irresponsible to bet more than around 3% of your bankroll on any one wager.

So, just think about how much money you would need to be staking each day to build up for that million.

And that would have to be money that you did not need for other expenses. In short, you would already need to be pretty well-to-do to have a shot at such a goal.

Finally, just as you may push yourself too hard to make $10 a day and take unprofitable wagers in the attempt, your impatience to reach a million could tempt you to make similar bad decisions, especially as the year is drawing to a close and you still have not met your goal.

The next thing you know, you could be losing money hand over fist rather than closing in on $1 million.

So, can you make $1 million betting on sports? Hypothetically, yes, if you have a huge bankroll to begin with, have a reliable system, do not experience any unexpected results, and do not make mistakes as a result of your impatience to hit that particular dollar amount.

Since that is a lot of caveats, you probably should try a different approach to goal-setting, especially if you have a smaller bankroll.

Q: Is it possible to make 30% of my bankroll each week betting on sports?

A: Another reason aiming for $10 a day is not ideal is because is because it is better to grow wealth exponentially rather than linearly.

To do that, you would need to aim for, say, 10% a day, not $10 a day.

But what percentage of your bankroll can you expect to earn each day, each week, each month, or each year?

Most professional bettors will assure you that you cannot expect a huge return like 30% of your account over the course of a month—at least not consistently or over the long-term.

To make returns like that, you would need to be taking hefty, unsustainable risks. If you are taking smaller, more reasonable risks, far more modest returns are the likely result. But at least you will have the chance to sustain those returns over the long-term, which ultimately is going to pay off over the years ahead.

Q: Is it possible to make a stable income betting on sports?

A: Yes, it is. But there are some prerequisites to making that happen. You will need:

• A Significant Bankroll Going In

If you don’t have a “good” bankroll yet, you should work on building up the money you are going to need in the meantime. You can do this by betting part-time and by saving money from your day job. You need the large bankroll both to give you enough money so that modest wager sizes (i.e. 3% of your bankroll) add up to a reasonable amount, and so that you can weather downswings.

• A Strategy That Works

And by this, we mean one which you have tested personally and know how to apply effectively. You will spend most of your time creating and refining this. You can learn a strategy from someone else, but you will need to personalize it to fit with your betting.

• Time to Wager

Do not, I repeat, NOT quit that day job just yet. It is better to maintain that stability in your life starting out. But it does mean that you will need to work around it to place your bets.

• Patience

It takes time to build a stable career betting on sports. It is a goal that most people will never achieve. You will need to be prepared for a dedicated journey, and will need to persevere through many challenges.

Making a stable income from sports betting, whether full time or part time, is a much more useful goal to set than “I want to make $10 a day,” or “I want to make a million dollars this year.”

It doesn’t pressure you to do anything except place the very best wagers you can.

Q: Is sports betting a good way to make a lot of money?

A: Define “a lot of money,” and define “good way.”

It all depends on what you want from a career. If by “good way,” you mean “easy way,” then no, it is not a good way to make a lot of money. Very few people become successful career betting professionals, and very few get lucky with one big bet and retire for life on a multi-million dollar payout.

Now, if what you mean by “good” way is something different, then maybe. If sports betting is something you are passionate about, and you are looking for a fulfilling way to make a living, sports betting can definitely be one.

Also, if by “good,” you mean a flexible way to make a living, once again, sports betting may be an exceptional choice. You get to decide on your work hours, the sport you will be wagering on, the types of bets you will make, and more. Even with a small bankroll, you can at least get started, and scale up from there.

If by “good” you are looking for a way to make money on your own terms, then sports betting is once more well worth thinking about. Nobody but you is your boss, and all you have to answer to are the demands of logic. So long as you are making smart bets, you have the chance to make money.

Then there is the question, “what do you mean by a ‘lot’ of money?” One person’s “lot” of money is another person’s “not nearly enough” money.

But I can say that if your bankroll is small, you won’t be making a “lot” of money starting out by pretty much any definition.

In the long run though? With the potential to earn returns exponentially, the sky is theoretically the limit. So could you eventually make a “lot” of money? Yes. In fact, you may have the chance to far surpass any salary which only grows by the occasional linear raise.

Q: Can I get rich and stay rich if I wager on sports?

The “staying rich” part is kind of going to be on you.

A person can potentially get rich betting on sports in either of two different ways:

1. They slowly, incrementally build up your account through responsible, strategic wagers, or
2. They win big on an extremely risky bet, i.e. a parlay of some nature.

If you get rich through gradual growth of your account, my guess is that you will probably be able to stay rich.

You will have spent years building good habits in terms of betting, spending and saving. So long as you simply stay on track with all three, you should be able to not only stay rich, but keep building your wealth.

What if you get rich through a single life-changing win? Will you be able to stay rich?

Here, things are far less certain. Many people who receive payouts from life-changing wins do not hold onto their money for long. They are psychologically unprepared for the sudden flood of cash into their accounts, and go wild with spending.

Within a matter of years, sometimes less, it is common for gamblers in such scenarios to go broke.

So, if you achieved riches through sports betting without discipline, you should take action to develop some discipline as soon as possible.

A great first step is to decide not to spend any of the windfall money for a period of one year after receiving it.

During that year, you can work on adjusting to your new reality and coming up with a viable long-term plan to stay rich.

Start Betting on Sports Online Now

We have now answered some frequently asked questions pertaining to sports betting and the possibilities of growing your wealth.

If you want to be a successful punter with a real shot at earning a reliable income from sports betting, you’ll want to read up on some of our tutorials.

Ready to start betting, whether on paper or live with real money? Check out our recommended online sportsbooks, and also make sure to take a look at these as well.

How Much Do You Win In Sports Betting

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Compensation may factor into how and where products appear on our platform (and in what order). But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you. That's why we provide features like your Approval Odds and savings estimates.

Of course, the offers on our platform don't represent all financial products out there, but our goal is to show you as many great options as we can.

This article was fact-checked by our editors and Christina Taylor, MBA, senior manager of tax operations for Credit Karma Tax®.

Betting on sports is part of the fun for many sports fans — even if their wagering hasn’t always been technically legal.

Until a May 2018 U.S. Supreme Court decision opened the door for every state to legalize sports betting, just four states allowed wagering on sports — Nevada, Delaware, Montana and Oregon. Legality, however, hasn’t stopped Americans from betting on sports. In fact, the American Gaming Association estimates that Americans spend more than $150 billion a year on illegal sports betting.

Since the Supreme Court’s ruling, New Jersey, Pennsylvania, West Virginia, Mississippi and Rhode Island have legalized sports betting. And other states are considering laws to permit wagering on sports.

But when you gamble on sports, it won’t matter to the IRS if your winnings came from a legal bet or from one that’s off the books. Your winnings are taxable income either way.

Is Sports Betting Worth It

If you plan to do some wagering in a state that’s legalized sports betting, it’s important to understand how tax on your winnings will work. Let’s take a look at how the IRS treats gambling winnings of any kind.

Sports-betting winnings are taxable income

The big question for sports gamblers: Are your winnings taxable income? As we said above, the answer is yes.

“Gambling winnings are fully taxable and you must report the income on your tax return,” the IRS says. “Gambling income includes but isn’t limited to winnings from lotteries, raffles, horse races and casinos. It includes cash winnings and the fair market value of prizes, such as cars and trips.”

Although sports betting isn’t one of the examples, it’s still covered by “gambling winnings.”

Whether sports betting is legal in the state where you place your bet doesn’t matter to the IRS. If you win, you have taxable income, which should be reported when you file your tax return.

These rules apply only to casual sports bettors. If you’re a pro — “in the trade or business of gambling,” as the IRS puts it — different rules apply.

How much tax you’ll owe depends on your personal tax situation and tax bracket.

You might also owe state income tax on any money you win from betting on sports, depending on which state you live in. For example, Nevada doesn’t have a state income tax. But Maryland does, and it considers winnings from gambling taxable income. If you win money betting on sports, check with your state to see if it taxes gambling winnings.

Form W-2G: Evidence of your sports-betting win

So you win a couple thousand bucks betting on your favorite sports team. How will the IRS know if you don’t tell it? Well, whomever you won the money from — a casino, racetrack, etc. — is supposed to report your winnings to the IRS on Form W-2G. The form tells the IRS some important information, including …

• Contact information for the payer who awarded you the winnings, including phone number, address and federal tax identification number
• Your name, address and taxpayer identification number
• How much you won
• When you won it
• What kind of wager you made
• And how much, if any, federal and state income tax the payer withheld from your winnings

Generally, the payer has to report your winnings if …

• You won $1,200 or more from a bingo game or slot machine
• You raked in $1,500 or more at keno
• Your poker victory tops $5,000
• You won $600 or more and your winnings are at least 300 times the amount of your bet (bingo, slots, keno and poker are exceptions to this rule)
• The payor withheld federal income tax on the winnings

Penalties for not reporting sports-betting income

Of course, the IRS wants you to report all your taxable income, and if you don’t you could face penalties and interest on any tax you owed but didn’t pay.

Generally, the penalty for not paying income tax that you owe is 0.5% of the unpaid tax. That rate is assessed monthly until you pay the tax you owe. Unpaid tax and penalties typically accrue interest, too — 5% compounded daily from the due date of your tax return to the date when you actually pay in full the balance of any tax, penalties and interest you owe.

However, if you’re caught intentionally omitting income — like gambling winnings — from your tax return in order to avoid paying tax on that income, it could mean additional penalties. According to the tax code, trying to “evade or defeat” tax you owe on income you’re required to report could be a felony with fines of up to $100,000 for individuals or five years in prison. Plus, people convicted of tax evasion can be held responsible for the costs of prosecution.

Lose a sports bet? It might be deductible!

Just as sports-betting winnings are considered taxable income, losses may be tax-deductible if …

• You itemize your deductions
• You keep detailed records of your winnings and losses

“To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements or other records that show the amount of both your winnings and losses,” the IRS says.

Any losses you deduct cannot exceed winnings that you report when you file your return. For example, if you reported winnings of $5,000, you could deduct losses only up to that amount. Additional losses would not be deductible. And if you lost $5,000 but didn’t win anything, you wouldn’t be able to deduct those losses at all.

If you’re eligible to deduct your sports-betting losses — or any other gambling losses — you’ll do so on Schedule A.

Bottom line

More than a quarter of Americans like to bet on football, 21% are interested in betting on baseball or basketball, and 20% would put some money down on a hockey game, according to Nielsen Sports. If you’re a fan of sports wagering, it’s important to understand that tax on sports betting is nothing new.

The IRS has always considered gambling winnings taxable income, and it expects you to report all your taxable income — even the money you win betting on sports.

If you’ll be reporting gambling winnings on your federal income tax return, or hoping to write off some gambling losses, be sure to keep detailed records of your wagers and losses.

Christina Taylor is senior manager of tax operations for Credit Karma Tax®. She has more than a dozen years of experience in tax, accounting and business operations. Christina founded her own accounting consultancy and managed it for more than six years. She co-developed an online DIY tax-preparation product, serving as chief operating officer for seven years. She is the current treasurer of the National Association of Computerized Tax Processors and holds a bachelor’s in business administration/accounting from Baker College and an MBA from Meredith College. You can find her on LinkedIn.

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