Betting on the Pick’em and Blitz’em games for free while still being able to redeem cash prizes is all good. But it’s important to keep in mind that you’ll have to pay SportsMillions taxes if redemptions reach $600 or more.
Although this sports and Vegas-style-gaming site is always free, players and bettors can redeem cash prizes, which are considered as revenue by the IRS and various state authorities. In this guide, you will learn more about the social betting options SportsMillions has to offer, how prize redemption works, and how you can prepare for taxes when you get a prize.
A quick intro to SportsMillions
You can find a lot more info in my full
SportsMillions review, but this is a fun, free social play and betting site that combines sports picks, fantasy sports, and social casino games.
| Sweeps Casino Name | SportsMillions |
| Launch Year | 2024 |
| Welcome Bonus | 1,000 Gold Coins + 3 Sweeps Coins |
| Virtual Coins | Gold Coins, Sweeps Coins |
| Prize Redemption | Yes |
| Tax | Yes |
| Tax Threshold | From $600 |
SportsMillions is not a conventional real-money gambling site, but it offers you the chance to compete with friends and exchange Sweeps Coins for real money prizes. In addition to free slots, the sportsbook offers Pick’ems, a form of daily fantasy sports, and the unique Blitz’em, a sports prediction game with a spinning wheel.
SportsMillions supports two types of virtual currencies. Gold Coins allow you to play for fun only. You can purchase various Gold Coin bundles or claim free GC and SC in bonuses. Sweeps Coins are free, and you get the chance to bet and redeem real cash prizes. If you redeem a lot at SportsMillions, taxes may be required once you go over $600.
SportsMillions: Pros & Cons
- 1,000 GC + 3 SC signup bonus
- Enjoy both sports and casino games
- Redeem SC for real money prizes
- Lengthy verifications for prize redemption
Do you pay taxes on SportsMillions?
You are eligible for US federal taxes if you redeem your Sweeps Coins for real money prizes worth $600 or more. The IRS considers this prize as income, and it is your responsibility to report and make the payment to the authorities. Additionally, you may also be eligible to pay taxes to your state. This depends on the specific jurisdiction and the amount you receive on your
SportsMillions redemption. The social sportsbook itself will not hold a portion of your prize, but it is your legal duty to file returns to Uncle Sam.
How much do you pay in SportsMillions taxes?
For federal taxes, the IRS takes 24% of your prize if the amount reaches the $600 mark. State SportsMillions taxes differ from jurisdiction to jurisdiction. So, you get various tax thresholds. Here are some examples of states that are eligible for the top SportsMillions.
- New York – 12.7% on $5,000 or more for residents.
- New Mexico – 6%.
- Texas – 24%.
- Pennsylvania – 3.07%.
- California – no state tax on sweeps prizes. Just pay the 24% federal tax.
- Minnesota – 5% on $600 or more.
- New Jersey – 8% on $10,001 or more.
Does SportsMillions charge taxes?
No, SportsMillions doesn’t charge taxes. However, you still need to play through your Sweeps Coins once or use them at least once for sports picks and submit documents proving that you’re the
SportsMillions legal age. It is your legal responsibility to comply with federal and state tax laws. After picking up your cash prize, you should include it on tax return forms appropriately, as it is part of your income.
SportsMillions sports bonus
Play on SportsMillions sports mobile
How to pay tax on SportsMillions
After playing for free and scooping up cash prizes above $600 on SportsMillions, taxes are due to the relevant authorities. The process is straightforward, and I’ve prepared a short guide for you below.
Determine if you’ve reached the tax threshold
Each state has unique tax laws. The first step is to get accurate and current info on the tax threshold and how the taxing process works.
Signup to the IRS website. Fill out the paperwork under “Other Income” on Schedule 1. You don’t use a W2G form as you would with a real money betting site. Also fill out the tax returns form in your specific state. Include all relevant details like dates, prize amount, and purchases applicable.
Having made sure that your details are correct and full, you can proceed to submitting the form.
Make the payment
The IRS site calculates the payment due. And you proceed to pay using a method of your choice.
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Tips to make the SportsMillions taxes process smoother
If you feel like paying your taxes is a confusing task, don’t worry because you are not alone. Many residents struggle with this process. But here are a few things you can do to smooth things over.
📈 Keep an active record of any winnings and losses
Track your progress as you play so that it will be easy for you to file your SportsMillions taxes. If you overly surpass the tax threshold, you should use a trusted online tax calculator or seek legal advice.
📝 Be ready for the taxation
Even if SportsMillions does not withhold your payable tax, you have to submit your tax returns and make the payments before the due date to avoid penalties. You must, therefore, put aside the estimated amount. This helps you plan your finances better.
📜 Get official information from IRS or State Treasury
In addition to the useful tips from various online forums, get accurate details from the proper authorities like the Internal Revenue Service (IRS). The official website has simplified instructions to help you complete your returns without unnecessary fees.
Gear up for federal and state taxes
Do you have to pay taxes on SportsMillions? Well, yes. As part of US federal law, all cash prizes exceeding $600 qualify for a federal 24% tax. Furthermore, different states can deduct a specific percentage of your prize as income taxes.
You may be surprised that winnings from a free play site like SportsMillions are tax-deductible. However, the law stipulates that after playing with a
social casino that pays real money
prizes, you qualify for taxes. SportsMillions does not withhold part of your prize for the purposes of taxation. It is your own legal responsibility to file and pay.
SportsMillions taxes FAQ
💰 How do I know if I should pay SportsMillions taxes?
Do you pay taxes on SportsMillions? Federal Tax is usually applicable to winnings over $600, and you can report your losses, or rather your purchases. While Gold Coin pack purchases are optional, the IRS considers this spend should you do make a purchase. Depending on your residence, you may be liable for state taxes. In New York, prizes over $5,000 must be reported.
💳 What payment methods can I use to make federal tax payments?
You can pay your taxes to the IRS with cash at one of the offices around the country. You can also make an online payment with the IRS DirectPay app. Optionally, you can use your Visa, MasterCard, or other credit cards to make the remittance.
⚖️ What if I avoid paying taxes on SportsMillions prizes?
Well, it is against the law to avoid tax. If you do not submit the returns, you are still liable to pay up, you may be made to pay fines. And even if you fail to estimate the dues properly, you will be liable to pay penalties on the shortfall.
