From Brackets to Bankrolls: Nearly 80% of Americans Are Betting on Sports, But Few Understand What Comes After the Win

New TaxAct® survey explores who's betting, how often, and why — and reveals most bettors aren't clear on the tax rules

DALLAS, April 7, 2025 /PRNewswire/ -- Sports betting has become a national pastime — and March Madness is one of the biggest moments of the year for casual and committed bettors alike. A new national survey from DIY tax software provider TaxAct® reveals that 79% of Americans have placed or plan to place a sports bet, signaling that what was once niche is now firmly mainstream. The survey of 750 U.S. adults paints a clear picture: sports betting is common, frequent, and often motivated by entertainment more than income.

More than half of respondents (54%) said they place bets a few times a year, with another 30% betting weekly during specific sports seasons. A dedicated 7% say they bet every chance they get, suggesting that for some, sports wagering is as much a routine as it is a pastime.

And while winning money is not the only draw. 30% of respondents bet for the thrill of it, and 25% said betting makes watching sports more exciting. Social drivers are strong too: 17% enjoy the competitive aspect, while 12% use betting to connect socially. Only 16% of respondents said their primary goal is earning extra income.

Tax Trouble in the Betting Boom
Despite sports betting's explosive growth, awareness of how it impacts taxes is low — and misconceptions are common. Only 18% of respondents knew that all winnings must be reported to the IRS, and just 25% correctly identified sports betting winnings as taxable income. Even fewer — 10% — were aware that losses can be claimed as an itemized deduction, and 11% knew the tax rate on gambling winnings can reach up to 37%. Perhaps most concerning, only 2% of respondents were able to correctly identify all these statements as true.

File with TaxAct and see how easy getting your taxes over with can be. Visit www.taxact.com to start filing.

Survey Methodology
Survey fielded in February 2025 reaching n=750 completions. Respondents were US-based, aged 18-64, who currently or have previously participated in sports betting.

About TaxAct
TaxAct is a DIY tax software provider dedicated to making tax filing easy, accurate and stress-free. To learn more, visit www.taxact.com.

Media Contact:
Andrea Courtney
[email protected]
415-249-6760

SOURCE TaxAct