Super Bowl XLVIII Fun Facts and Sports Betting Taxation, #188

Retire With Ryan

Last year’s Super Bowl set the record as the most-watched TV event in Nielsen rating history at over 150 million viewers. It’s hypothesized that this year’s Super Bowl is going to set a record for something completely different: The most amount of money bet on a Super Bowl. Why? Because sports betting is now legal in 38 states.

So if you’re one of the 68 million Americans estimated to bet over $23.1 billion on the Super Bowl this year, how will winning impact your income taxes? Learn what you need to be mindful of—and some fun Super Bowl XLVIII facts—in this episode of Retire with Ryan.

Disclaimer: Make sure whatever money you bet will not impact you financially if you lose. If you have a gambling addiction and need help, call 1-800-662-4357.

You will want to hear this episode if you are interested in...

• [1:29] Sign up for my retirement planning course or workshops
• [2:22] My prediction for Super Bowl XLVIII
• [3:45] Fun facts about Super Bowl XLVIII
• [5:44] How much does the Super Bowl make?
• [ ] The ways people bet on the Super Bowl
• [13:02] How much of your winnings are taxable?

How much does the Super Bowl make?

The Super Bowl makes between $300 million and $1.3 billion a year. Much of the money generated is pocketed by the NFL. They receive 100% of ticket sales, millions of dollars from merchandise sales, and a lot of money from networks paying for broadcast rights for the game.

This year, Super Bowl ads will cost $7 million for a 30-second spot. This is the second year at the price. Super Bowl ads first cracked the million-dollar mark in 1995. For many companies, this ad spot is worth the cost because it gives them a broad reach to consumers.

How much of your winnings are taxable?

If you know me, you know that I don’t gamble (I’d rather make a long-term investment in the stock market). I’ve only made one sports bet in my lifetime. It was in 2021 when FanDuel offered 55-to-1 odds of picking the Super Bowl winner. It was only for new users who’d never opened an account. They set the bet limit at $5, so you could win a maximum of $275.

The Buccaneers were favored to win that year. My wife and I each opened an account and each of us bet on a different team. When the Buccaneers won, we collected our earnings, closed our accounts, and have never bet since.

If you’re one of the $36 million expected to bet through legal means, how much of your winnings are taxable? If you bet through FanDuel or DraftKings and win more than $600 of net profit, you are legally obligated to report that. They’ll send you a 1099-MISC that you must report to the IRS.

If you receive the winnings through PayPal, you’ll likely receive a 1099-K form. If you don’t receive either of these forms, the IRS still expects you to report all of your income, regardless of the amount.

So what are my predictions? As of 2/7/24, my Super Bowl XLVIII prediction is that the Chiefs will win, 21-20. The 49ers are actually favored by two points. Check back to see how close my prediction is to the actual score!

Resources Mentioned

• Retirement Readiness Review
• Subscribe to the Retire with Ryan YouTube Channel
• Sign up for my retirement planning course or workshop
• Understanding your Form 1099-K
• About Form 1099-MISC

Connect With Morrissey Wealth Management

www.MorrisseyWealthManagement.com/contact

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