Yes. Sports betting apps can report certain gambling winnings to the IRS, and you are generally responsible for reporting your gambling income even when the betting app does not issue you a tax form.
For 2026, the IRS has specific reporting rules for sports wagering. A sportsbook generally must file Form W-2G when sports-betting winnings meet the applicable reporting threshold and are at least 300 times the amount wagered.
Importantly, the absence of a W-2G does not mean your sports-betting winnings are tax-free. The IRS states that gambling winnings, including sports-betting winnings, are taxable and must be reported.
What Does a Sports Betting App Report?
When a sportsbook is required to issue a W-2G, the form reports information about the gambling winnings and may include federal income tax withheld.
For sports wagering, the 2026 IRS instructions specify that Form W-2G is generally required when the winnings meet the applicable reporting threshold and are at least 300 times the wager.
The form can include information such as:
- Your name
- Address
- Taxpayer identification number
- Amount of reportable winnings
- Date of the winning event
- Type of sports wager
- Federal tax withheld
A copy of the W-2G is provided to the winner, while the payer files the information with the IRS.
Do You Have to Report Sports-Betting Winnings Without a W-2G?
Yes.
This is an important distinction. Tax reporting is not limited to winnings that appear on a W-2G.
The IRS says gambling winnings must be reported on your federal tax return, including winnings that are not reported on a Form W-2G. Sports betting is specifically included as gambling income.
Therefore, you should keep your own records of your bets, winnings, losses, deposits, and withdrawals rather than relying exclusively on tax forms from a sportsbook.
Does the IRS Tax Your Withdrawals?
Not necessarily.
A withdrawal from a sports-betting account is not automatically the amount of taxable gambling income. Tax rules concern gambling winnings and losses, rather than simply treating every transfer from your sportsbook account as income.
For example, depositing $1,000, winning $500, and withdrawing $1,500 involves different transactions that need to be considered under the applicable gambling-tax rules.
Because gambling tax treatment can become complicated, especially when you have many bets throughout the year, maintaining detailed records is important.
What If You Lose Money Sports Betting?
Gambling losses have separate tax rules.
The IRS says gambling winnings are taxable, and taxpayers may have specific rules for deducting gambling losses. Your ability to deduct losses can depend on your circumstances and the tax year involved.
You should not assume that losing money overall automatically means you have no taxable gambling income.
For example, someone could have winning bets and losing bets throughout the year while still having reporting obligations.
Can a Sportsbook Withhold Federal Taxes?
Yes, certain sports-betting winnings can be subject to federal income-tax withholding.
For 2026, the IRS instructions state that regular gambling withholding is generally 24% when sports-wagering proceeds meet the applicable requirements, including winnings exceeding $5,000 after subtracting the wager and winnings of at least 300 times the wager.
If federal tax is withheld, it should be reflected on the applicable Form W-2G and claimed as federal income tax withheld on your tax return.
What If You Never Receive a W-2G?
You still may have to report your gambling income.
The IRS explicitly states that taxpayers must report gambling winnings even when those winnings are not reported on a W-2G.
This is why it is important to keep records rather than waiting for a sportsbook to send you a tax document.
Your records may include:
- Betting statements
- Account transaction histories
- Wager confirmations
- Deposits and withdrawals
- Winning and losing bets
- Tax documents received from sportsbooks
Do Sports Betting Apps Report Every Bet to the IRS?
The federal W-2G reporting requirement is not the same thing as saying that every individual bet results in a W-2G being sent to the IRS.
Form W-2G reporting depends on the type and amount of gambling winnings and applicable thresholds. For sports wagering, the 2026 IRS instructions specifically establish a reporting rule involving the applicable threshold and a 300-to-1 winnings-to-wager ratio.
However, you should not interpret the reporting threshold as a tax-free threshold. Winnings can still be taxable even when they do not result in a W-2G.
Does the IRS Know About Sports Betting Accounts?
Sportsbooks operating under applicable regulations generally collect identifying and tax information from customers. When reportable gambling winnings occur, the sportsbook may have federal reporting obligations.
The IRS Form W-2G instructions require the winner’s taxpayer identification number for reportable sports-wagering winnings.
That means you should not assume that a sportsbook account is invisible to tax authorities simply because you have not received a tax form.
What Should You Do at Tax Time?
If you bet on sports, keep accurate records throughout the year.
At tax time, review your sportsbook tax documents and account statements. Report your gambling income as required, and determine whether you qualify for any deduction for gambling losses under the rules applicable to your situation.
The IRS says gambling winnings are reported on Form 1040 or Form 1040-SR, with the applicable gambling income generally reported through Schedule 1.
If you have substantial betting activity, multiple sportsbooks, or complicated wins and losses, a tax professional can help you determine the appropriate reporting method.
Frequently Asked Questions
Do sports betting apps send W-2G forms?
They can. Sportsbooks must issue and file Form W-2G when applicable federal reporting requirements for gambling winnings are met.
Does FanDuel or DraftKings report winnings to the IRS?
Sportsbooks must follow applicable federal tax-reporting requirements. Whether you receive a W-2G depends on the applicable reporting rules and the nature and amount of your winnings.
Do I have to report sports-betting winnings if I don’t get a W-2G?
Yes. The IRS says gambling winnings must be reported even when the payer does not issue a W-2G.
Are sports-betting losses tax deductible?
Potentially, but specific rules and limitations apply. Do not assume that all losses can automatically be deducted against all income.
How much can you win sports betting before paying taxes?
There is not a simple universal “tax-free” winnings amount. Gambling winnings are generally taxable, while W-2G reporting and withholding have separate thresholds.
Bottom Line
Yes, sports betting apps can report gambling winnings to the IRS. For 2026, sportsbooks have specific Form W-2G reporting and withholding requirements for qualifying sports wagers.
But receiving—or not receiving—a W-2G does not determine whether your winnings are taxable. The IRS requires taxpayers to report gambling winnings, including sports-betting winnings, even when a W-2G is not issued.
If you use sports betting apps, keep detailed records of your activity and review your tax documents each year. Fo