Every year, millions of Americans wager billions of dollars on the Super Bowl, hoping to cash in on the biggest sporting event in the country. This year was no exception, with an estimated $4.39 billion in bets placed. But while some walked away as winners, many found themselves on the losing end.
If you were among the unlucky bettors, all is not lost. The IRS provides a few legal ways to soften the financial blow. Here are four loopholes that could help taxpayers who lost money on Super Bowl bets and other forms of gambling.
1. Offset Losses Against Winnings (Even from Different Events)
One of the most common ways to recover some of your gambling losses is by offsetting them against your winnings. The IRS allows you to deduct gambling losses up to the amount of your reported winnings—and they don’t have to be from the same event.
For example, if you won $5,000 from a casino earlier in the year but lost $3,000 betting on the Super Bowl, you can report the $5,000 as taxable income but also deduct the $3,000 in losses, effectively reducing your taxable winnings to $2,000.
You May Also Like
Key Tip: Keep detailed records of all your gambling activities, including receipts, bank statements, and logs of wins and losses.
2. Leverage Professional Gambler Status
If gambling is more than just a casual hobby for you, consider filing taxes as a professional gambler. To qualify, you must show that gambling is a business endeavor—meaning you wager regularly, have a strategic approach, and seek to profit from your bets.
Professional gamblers can file under Schedule C (Profit or Loss from Business) instead of reporting winnings as “other income.” This allows you to deduct not just losses but also business-related expenses, such as:
- Travel costs to casinos or sporting events
- Subscription fees for betting data or analytics tools
- Coaching fees for professional gambling advice
- Costs for research, books, or courses on sports betting
Warning: The IRS scrutinizes professional gambler claims. Be prepared to prove that you take gambling seriously and treat it as a business.
3. Turn It Into a “Side Hustle”
Did you know that running a sports betting blog, YouTube channel, or social media page could help you claim deductions? If you create content about sports betting—whether it’s sharing predictions, analysis, or betting strategies—you may be able to write off some of your expenses as business-related.
For example, if you operate a sports betting website or YouTube channel and generate revenue (even a small amount) from ads, sponsorships, or affiliate links, you could potentially deduct expenses such as:
- Subscriptions to sports analytics platforms
- Software for video editing or website maintenance
- A portion of your home office expenses
The key here is that you must actually monetize your content in some way. A personal Twitter account posting betting picks likely won’t qualify, but a monetized blog or channel can make those costs deductible.
4. Write Off Entry Fees and Travel
If you traveled for a Super Bowl betting event, there’s a chance you can write off some of your travel expenses—but only if you can tie them to a business purpose.
For instance, if you attended a sports analytics conference, networking event, or seminar related to gambling while placing Super Bowl bets, some of your expenses might be deductible. These could include:
- Airfare, hotel, and transportation costs (if part of a business trip)
- Entry fees for betting tournaments or networking events
- Meals and entertainment related to your gambling business
However, simply flying to Las Vegas for the Super Bowl and placing bets won’t be enough. You need a legitimate business reason, such as attending an industry-related event or meeting with other professionals in the field.
While gambling losses can sting, smart taxpayers can use these strategies to legally reduce their tax burden. Whether you’re a casual bettor or someone who takes gambling more seriously, leveraging tax deductions could help you recover some of your losses.
Important Reminder: Always keep detailed records of your bets, wins, and losses. Consult a tax professional to ensure you qualify for deductions and avoid potential IRS issues.
By taking advantage of these tax loopholes, even Super Bowl betting losses can have a silver lining!
