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Now That Sports Betting Is Legal, Here’s How You Get Paid
October 16, 2018

Now That Sports Betting Is Legal, Here’s How You Get Paid

By: Ifrah Law

Congratulations, you won a sports bet! What happens now?

In the five states where sports betting is now legal, any qualifying individual who places and wins a sports bet can exchange their winning ticket for payment. That means any individual who can prove they are over 21 through an in-person check or the latest digital identity verification technology could soon be a winner. But just as casinos have different state-by-state guidelines for how this occurs, so do sportsbooks.

We’ve looked into the payment process for bettors and whether any state legislation stands out on the matter. Here is your state-by-state guide to getting paid.

Nevada

The Nevada Gaming Commission governs sports betting regulations in the state. Sports betting has been legal in Nevada since 1949, more than 50 years longer than any other state. That’s because Nevada was grandfathered in to PASPA, which prevented the expansion of sports betting legalization but did not overturn states where it was already legal.

Bettors don’t need to be Nevada residents to enjoy sports betting online or off, but they do need to be physically in the state of Nevada to place a bet. To place a bet, bettors must show up in person at a brick-and-mortar casino with a valid ID to prove they are legally of age. After that, they may place bets either online or in person. If bettors win a bet online, they work within the licensed operator’s guidelines. For example, if they win a bet through DraftKings, they can withdraw their winnings using PayPal or a check.

New Jersey

The New Jersey Casino Control Commission oversees sports betting payment guidelines in the state. According to the organization’s Frequently Asked Questions, customers can register for an account to place bets either at a casino or online at a licensed gaming site. However, if the bet is for more than $10,000, they must place it in person at a casino.

New Jersey’s payment guidelines were nearly put to the test when a September computer error incorrectly caused a bettor to believe he’d won an $82,000 payout on a $110 football bet. The error lay with FanDuel, the sportsbook operator, and the company decided to pay out the bet.

“Above all else, sports betting is supposed to be fun,” the company said in a statement.

Like DraftKings, FanDuel allows bettors to withdraw their earnings through either PayPal or a check, with PayPal being the speedier option. Once withdrawn, bettors will need to report all of their earnings to the IRS and pay taxes. Keep in mind that safeguards in New Jersey keep bettors aware of these taxable amounts in order to ensure they can afford it.

Mississippi

Mississippi’s sports betting guidelines are regulated through the Mississippi Gaming Commission. There is no mobile provision in Mississippi, so bettors must show up in person at a brick-and-mortar casino anytime they want to place a bet. Some casinos offer online apps for sports betting, which can only be used while bettors are physically on the casino’s premises.

Because Mississippi sports betting occurs exclusively at casinos, withdrawal occurs based on the casino’s own regulations. This can range from a bank transfer to a check to an in-person withdrawal at the cashier’s cage. It’s worth noting that Mississippi residents are not required to report Mississippi gambling winnings as income on their state return.

Delaware

The Delaware Lottery oversees sports betting in the state, as sports betting falls under the umbrella of games of chance. According to their website, winners can cash in their winning tickets at any of Delaware’s three sportsbooks (Delaware Park, Dover Downs or Harrington Raceway & Casino) or at the Delaware Lottery office in Dover.

The rules are different for football parlays specifically. If your winnings total to less than $600, you can redeem your winning card at any Delaware sports lottery retailer or sportsbook. However, if the prize is over $600, it must be cashed at one of Delaware’s three sportsbooks or at the Delaware Lottery office in Dover. Additionally, any prize that is worth over $600 and more than 300 times the initial wager is reportable winnings and is subject to taxes.

West Virginia

According to State Senate Bill 415, passed into law this March, the West Virginia Lottery Commission oversees sports betting in the state. The Lottery’s rules, which went into effect on August 30, were eFiled and can be viewed online. According to the rules, bettors can collect their winnings from the same place they buy tickets: the sports booth kiosk.

West Virginia also permits online gaming, which means it’s also possible for bettors to receive their earnings online through a check or PayPal deposit. Sports betting in West Virginia is geolocation-dependent, only allowed for people over 21, and patrons must have financial information on file. By sharing their financial information ahead of time, bettors don’t only show where they can receive winnings, but proof that they meet the legal guidelines to place bets.

Remember: Check the Sportsbook

While there are some specifics to the processes of each state, other payout requirements can be tied to the sportsbook on which a bettor makes a winning bet. For example, DraftKings lists some requirements particular to residents in specific states, like Missouri, and requires bettors to fill out a W-9 tax form (which includes their state of residence) before placing a bet. Meanwhile, FanDuel limits deposit amounts and payouts depending on the bettor’s state.

As sports betting becomes legal in an increasing number of states, the laws are constantly evolving to better serve patrons around the country. These guidelines will help, but please check with your state’s regulations before placing a sports bet to be sure.