The rumor mill has been whirring recently and it’s all to do with the issue of Sportzino taxes. It seems some people think Sportzino charges its members a tax for using its sweepstakes sportsbook, but this simply isn’t the case.
Here, we hope to dispel the myth that Sportzino charges taxes as part of its service, while also telling a few home truths about the relationship between tax and sweepstakes prize redemptions. Because, like it or not, you may be liable to pay tax when using sites like Sportzino, but only if you choose to exchange Sweepstakes Coins for prizes.
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Sportzino Highlights
- Bet on sports for free
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Do you pay taxes on Sportzino?
The short answer is: yes, you may need to pay Sportzino taxes. We’ll get to the exact reason as to why the IRS might come knocking momentarily but, suffice it to say that you probably weren’t expecting this bombshell when you first stumbled across our
Sportzino review.
Don’t worry, though, because we’re here to explain all there is to know about paying taxes at Sportzino – specifically the what, the why, and the “how much?!” of these (potentially) unexpected charges.
Does Sportzino charge taxes?
The first thing to know is that Sportzino doesn’t charge taxes to bettors using its social sportsbook. It’s merely one of many sweepstakes gaming sites operating in the USA whose players may be liable to pay taxes in certain scenarios (which we’ll come to in just a hot second).
That means there’s no reason to shun Sportzino through fear that it’s a harbinger of additional taxes. Any charges you may be liable to pay as a consequence of using Sportzino are purely imposed by the IRS.
Indeed, while Sportzino taxes are the subject of this guide, it’s worth noting that you may be liable to pay taxes to the IRS when using any of the USA’s sweepstakes casinos and sportsbooks – a point worth remembering regardless of the site you choose.
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Why do you have to pay taxes on Sportzino?
Let us rephrase that question slightly: why do you have to pay taxes on sweepstakes gaming sites? After all, as we’ve just established, it isn’t just Sportzino taxes that you may be liable to pay by choosing to use sweepstakes casinos and sportsbooks in the USA.
According to the IRS, all redeemable sweepstakes prizes are taxable. And by “all”, they really mean it – we’re talking small amounts of cash, gift cards, and other prizes that hold residual monetary value in the real world.
We’re guessing that there’ll be a lot of you sitting there right now thinking, “huh, I did not know that”. And that’s not really much of a surprise, as the issue of taxes on sweepstakes prizes hasn’t been very well publicized since these unique gaming sites proliferated in the US.
Of course, if you know anything about sweepstakes casinos, you’ll know that not all prizes they offer equate to redeemable monetary rewards. It all depends on the type of coin you’re using and the game mode you’re playing in, as set out below…
| Sweepstakes Casino/Sportsbook Coins | Explainer |
| Gold Coins (GC) | Gold Coins are just-for-fun tokens used at sweepstakes gaming sites like Sportzino. These coins have no monetary value and are purely for fun-only play, meaning they cannot be traded for real prizes. Collecting only Gold Coins keeps the IRS from your door. |
| Sweeps Coins (SC) | Sweeps Coins can be exchanged for real prizes when certain conditions are met. They are classified as "redeemable," meaning a bettor can collect a set amount before trading them for prizes like cash or gift cards. Typically, 1 SC may be worth $1 when redeemed as a cash prize. However, the IRS requires a tax cut from any monetary prize, even if redeemed as a gift card instead of cash. |
So, to summarize the findings of this table: if you stick to using Gold Coins on sweepstakes bettign sites like Sportzino, you won’t pay any taxes. If, however, you collect free SC through
sweeps casino promo codes
and other means, and subsequently exchange these for a prize, you lawfully owe a sum of this to the IRS.
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How do you pay Sportzino taxes?
So, since it transpires that you may owe the IRS after using sites like Sportzino, the next question is: how do you go about paying it? And what are the repercussions if you fail to do so?
Firstly, let us reiterate the fact that it is your responsibility to pay sweepstakes-related taxes to the IRS – in the same way that it falls to you to check that you live in a
Sportzino legal state. Every sweepstakes gaming site we’ve encountered takes a “self-report” approach to prize-related taxes, so it falls to you to keep track of what you owe and declare this to the relevant tax authority.
With that in mind, here’s a quick guide on how you may like to approach filing any sweepstakes prize taxes you owe…
1. Keep track of your sweepstakes prize redemptions
Whether you’re using Sportzino or another sweepstakes gaming site, you must track how many Sweeps Coins you exchange for prizes. Screenshot any SC redemption receipts you receive, making sure to capture the date and the real-world monetary value of the coins.
2. Decide on the appropriate tax filing method
When it comes to actually notifying the IRS of your additional income from sweepstakes redemptions, you need to submit the correct documentation. There are two possible forms to use here, depending on how much you’re declaring. These are:
- Prizes under $600: Report these as “Other Income” on Line 8 of IRS Form 1040
- Prizes over $600:
Fill out a W-2G form; Sportzino may be able to provide this if you ask
3. File as new federal taxes
You must file all sweepstakes casino prizes as additional income on your federal tax return. This may require you to submit evidence of your government-issued ID or social security number if you’ve never previously submitted a federal tax return manually.
And there you have it – that’s how to pay Sportzino taxes, or any other sweepstakes-related taxes for that matter.
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Does Sportzino charge taxes? It’s not quite as straightforward as that
The very notion that Sportzino could levy taxes on its members is kind of absurd when you think about it. With plenty of similar sweepstakes gaming brands out there, we doubt that Sportzino would have many customers left if it started taking a cut of people’s sweepstakes prizes. So, just to clarify for the final time: Sportzino does not charge taxes.
One organisation that does charge them, however, is the IRS. The federal tax collector-in-chief requires any online sweepstakes gamer to hand over a portion of the money they’ve picked up while redeeming Sweeps Coins, as it’s technically classed as taxable income. That means that whenever you exchange Sweeps Coins for a prize – even if it’s a gift card – this is notifiable and you must reach out to your local tax authority.
It’s our understanding that very few people know that taxes are owed on sweepstakes prize redemptions, so we’re pleased we were able to bring this to the attention of Sportzino users—even if we would rather be discussing more exciting topics, like the
Sportzino refer-a-friend bonus, for instance. Obviously, the prospect of paying tax on sweepstakes prize redemptions does slightly ruin the fun, but it's something that you just have to live with as a sweepstakes casino and sportsbook player in the USA.
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Sportzino taxes FAQs
💰 What taxes and charges apply at Sportzino?
No taxes or charges apply at Sportzino. The site is completely free to use at the point of entry, with any purchases you make on the site being entirely optional. This is required as part of the brand’s legal status as a sweepstakes gaming site.
📜 Is Sportzino legal in the USA?
Yes, Sportzino is legal in lots of US states, with the exception of Washington, Idaho, Michigan, and Georgia. Since this is a sweepstakes sportsbook, it doesn’t fall into the same category as real money bookmakers, so it’s widely available across the States.
🪙 What if I don’t redeem prizes at Sportzino – will I still need to pay taxes to the IRS?
Certainly not, no. As made clear earlier in our guide, sweepstakes players are only required to pay tax on qualifying sweepstakes redemptions – when they’re exchanged sweeps coins (or similar) for a prize like cash or a gift card. You are not liable to pay any tax to the IRS if you play in gold coins mode only, although that does remove the chance to claim real prizes.
