Winnings that meet certain state or federal thresholds must be reported by Smarkets USA Op Co (SBK) to the Internal Revenue Service (IRS) for tax purposes.
There may be tax withheld from your winnings, depending on how much you’ve won.
The information provided on this page doesn’t constitute tax advice and SBK advises you to consult with your tax advisor.
What is a Form W-2G?
A Form W-2G reports gambling winnings and any federal income tax withheld on those winnings.
The requirements for reporting and withholding depend on:
- the type of gambling
- the amount of the gambling winnings
- the ratio of the winnings to the wager.
Why have I triggered a Form W-2G?
SBK will issue a Form W-2G if both of the following criteria are met:
- Winnings (reduced by the wager) are $600 or more, and
- Winnings (reduced by the wager) are at least 300 times the amount of the wager;
Why do I have Federal withholdings on my Form W-2G?
We are legally required to withhold winnings if both the following criteria are met:
- Winnings (reduced by the wager) are $5,000* or more, and
- Winnings (reduced by the wager) are at least 300 times the amount of the wager;
Why do I have State withholdings on my Form W-2G?
In some cases, we’re legally required to withhold additional State taxes from winnings. State gambling withholding requirements vary in different States.
What happens with my Form W-2G?
Smarkets USA Op Co (SBK) is required to send the Form W-2Gs to:
- The Internal Revenue Service (IRS)
- The State IRS
- You, the customer
How will I receive my Form W-2G?
You will be sent your Form W-2G via email. Any money withheld for tax purposes will also be shown in your Statement under the heading "Withheld Amount".