First-time World Cup bettors in the United States may be facing a tax issue many casual players do not expect: gambling winnings are taxable even when a sportsbook does not send a form.
A new Kiplinger report warns that the 2026 tournament arrives with a new 90% limit on gambling loss deductions, creating what tax writers call a “phantom income” risk for some players. The issue is most relevant to bettors who win during one part of the tournament, lose later, and assume the net result is all that matters.
The IRS says gambling winnings are “fully taxable” and must be reported on a tax return. That includes sports betting, horse racing, lotteries and casino winnings. The agency also says winnings must be reported even when they are not listed on Form W-2G.
For players, the practical risk is recordkeeping. A sportsbook account balance can move quickly during a major football tournament, especially when live betting, parlays and small repeat wagers are involved. A player may remember the final net loss but forget that tax reporting can separate winning sessions from losing ones.
Kiplinger gives the example of a bettor who wins $3,000 and loses $4,000. Under the 90% deduction limit described in the report, only $2,700 of the winnings could be offset by losses, leaving $300 of taxable income even though the player is down cash overall. Bettors who take the standard deduction may have even less room to use losses.
This is not only a U.S. tax story. The World Cup is expected to pull in new players across regulated markets, including fans who usually follow football but do not regularly use a sportsbook. Casual players often focus on odds, favorite teams and promotions; tax records, state rules and account statements tend to come later.
The safer approach is to treat betting records like financial documents. Players should keep a log of stakes, dates, wins, losses and withdrawals, and download account statements before apps archive older data. That matters for taxes, but it can also show whether tournament betting is growing beyond the original budget.
Readers following the tournament through regulated books can find broader coverage in our Betting section. Anyone who feels betting is becoming hard to control can also use the support links listed on our Responsible Gambling page.
The headline for bettors is not that every wager creates a tax problem. It is that a high-profile tournament can create hundreds of small transactions, and those transactions may matter months later. Before placing World Cup bets, players may want to check local rules and speak with a qualified tax professional.
Players outside the United States should not assume the same rules apply, because gambling tax treatment varies widely by country. The safer habit is universal: keep app statements, bank records and withdrawal confirmations, and do not wait until filing season to reconstruct a tournament betting history.
- World Cup Bettors Face New Tax Rules - June 12, 2026