Delaware passed a law legalizing sportsbetting. Starting June 5th, it is now legal for people in Delaware to bet on their favorite sports team or player. This makes them the second state in the U.S. to legalize betting on sports.
Sportsbetting is available in the state's three casinos: Delaware Park, Dover Downs, and Harrington Raceway. Machines are found in each casino. Single-game betting is available for professional sports (MLB, MLS, NBA, NFL, and NHL), golf, and auto racing. In-game bets are not currently available. Certain sports retailers can accept professional and college parlays.
You Have to Pay Taxes on Your Winnings
While Delaware made sports betting legal, some people don't know they have to pay taxes on their winnings. Be prepared to provide tax information.
According to Intuit, any gambling institution is required to withhold 24 percent of winnings on bets and casino games. You'll get a W-2G to show you how much you've won and how much was withheld. The IRS gets that information, too.
If you don't get that form, you still have to report your winnings and pay taxes on them. If you weren't asked for tax information after winning a bet, ask the company if they'll be withholding taxes. If they don't, you should send in 24 percent as an estimated tax payment. You want to complete Form 1040-ES and submit payment through the mail or online. Don't forget making tax payments to your scity and state treasurer, if applicable.
Gambling is Making a Difference
By the year 2012, gambling in Delaware was making up just under 10 percent of the state's revenues. Slots were added about 20 years ago and that led to the increase. Slots drew crowds and it seems sportsbetting will continue the increase in revenues.
For a complete list of terms and rules regarding sportsbetting in Delaware, the state set up a helpful site. Find everything from terminology to rules at delottery.com/sports-lottery.
