US Taxation of Gambling Winnings and Incentives to Bet
|Title:||US Taxation of Gambling Winnings and Incentives to Bet||Authors:||Whelan, Karl||Permanent link:||http://hdl.handle.net/10197/13073||Date:||Aug-2022||Online since:||2022-08-17T15:29:49Z||Abstract:||Sports betting is growing rapidly in the US after its legalization by the Supreme Court in 2018. This paper describes the treatment of gambling winnings and losses in the federal tax code and shows how the system may incentivize some gamblers to substantially increase the scale of their betting in order to have a chance to win. This incentive stems from the fact that gambling losses can only be deducted if taxpayers are filing for itemized deductions, meaning the scale of gambling losses has to be large enough to push a taxpayer’s eligible deductions over the standard deduction. This incentive to engage in large-scale betting applies mostly to lower and middle-income households.||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Start page:||1||End page:||24||Series/Report no.:||UCD Centre for Economic Research Working Paper Series; WP2022/22||Copyright (published version):||2022 the Author||Keywords:||Sports Betting; Gambling; Income tax||JEL Codes:||D81; H24; L83||Language:||en||Status of Item:||Not peer reviewed||This item is made available under a Creative Commons License:||https://creativecommons.org/licenses/by-nc-nd/3.0/ie/|
|Appears in Collections:||Economics Working Papers & Policy Papers|
Show full item record
If you are a publisher or author and have copyright concerns for any item, please email email@example.com and the item will be withdrawn immediately. The author or person responsible for depositing the article will be contacted within one business day.