Nevada Sports Betting Laws
Nevada has the oldest legal online sports betting market in the country. Legal sports betting went live in Nevada in 1931 during the great depression. Therefore, there is no specific law[3] legalizing online sports betting as it's developed like any other online technology in the state.
When Congress passed PASPA in 1992, Nevada kept legal sports betting under a grandfather clause. The first betting apps in Nevada went live in 2010, before Black Friday on April 15, 2011, the date when the Department of Justice seized gambling domains across the US.
The relevant article[2] allowing online sports betting is NGCB Regulation 22, which elaborates on the enforcement of sports betting laws in Nevada.
On top of legal sports betting, there are obviously several other gambling options in Nevada. There are over 300 casinos in the state, though you can't play online casino games or buy lottery tickets. You can bet on horses, take part in poker games online and in-person, and play daily fantasy sports (DFS).
Gambling is so ingrained in Nevada culture that you can find gaming machines everywhere. Grocery stores, bars, and even the airport all have slot and video poker machines ready for you to enjoy. But if it's sports betting you're after, look at the best legal online sportsbooks in Nevada.
Paying Gambling Taxes in Nevada
There's only one certainty in gambling, and that's the fact the government wants its cut. Nevada charges individuals a 6.75%[5] tax rate on gross gaming winnings. This is well below other markets in the US. Operators withhold this automatically.
Operators are where the state makes the bulk of its tax revenue, though. Any firm or location operating gaming machines must pay a graduated tax rate based on the gross gaming revenue (GGR) it generates. Here is the operator tax schedule at the time of writing:
- 3.5% on GGR not more than $50,000 per month.
- 4.5% on GGR between $50,000.01 and $134,000 per month.
- 6.5% on GGR of $134,000.01 and over.
There was a provisional measure on the November 8, 2022, ballot that would add another tier of 9.5% on GGR exceeding $250,000. This 2022 Tax Increase Initiative was not included in the 2022 ballot and will remain to be voted on in future ballots. Ensure to check regularly for any future updates.
Of course, Uncle Sam wants his share too. The federal government requires operators to mail anyone with net gambling winnings IRS Form W2-G. This outlines all your wins and losses throughout the year and any withholding you were subjected to. You will need this to file your federal income taxes.
Taxes are withheld at a rate of 24% if you win more than $5,000 on a single wager minus the stake and the payout is at least 300x the amount of your bet. If you haven't supplied the operator with your Social Security number (SSN) then the withholding rate balloons to 28%.
If all of this sounds confusing to you, you're not alone. The IRS published Tax Topic 419 which outlines much of what you need to do to file your gambling taxes. It's worth noting the IRS suggests keeping a log of all wins and losses for auditing purposes.