Question for anyone in know.
Kansas just passed sports betting but Missouri has not yet.
Do the online apps simply require you to be physically in the correct State or have a residence in the correct State?
My kid has a Draft Kings account, but we live in Illinois and it’s legal here. We signed up online, but I think some sports books make you sign up in person.
My kid started with a hundred bucks plus got a $100 bonus when he signed up, his account has been close to $2,000 and as low as under $200. He makes a lot of longshot (stupid IMO)bets, but he’s never taken money out so I’m not sure about taxes.
I have a non betting draft kings account.
I will update it when Kansas goes live.
I believe the apps require you to have gps location on and you cannot bet if in a state that doesn’t allow it.
From the IRS: You may deduct gambling losses only if you itemize your deductions on [Schedule A (Form 1040)] and kept a record of your winnings and losses. The amount of losses you deduct can’t be more than the amount of gambling income you reported on your return. Claim your gambling losses up to the amount of winnings, as “Other Itemized Deductions.”
From the IRS: Gambling losses (gambling losses include, but aren’t limited to, the cost of non-winning bingo, lottery, and raffle tickets), but only to the extent of gambling winnings reported on Schedule 1 (Form 1040), line 8b.
I don’t know how the issuer reports on the 1099G, gross winnings or net winnings with the issuer. Winnings are winnings even if not withdrawn. The IRS looks for a filer to have good records of any losses deducted.
That, or they can restrict by IP address of the device using geolocating databases. Not as accurate as the GPS obviously, but they can get close.
I am in Kansas but I live 2 miles from the Missouri state line
Your phone will tell the app where you are when placing the bet.