In his latest column, Tom Waterhouse of Waterhouse VC discusses the wagering experience in the US, as well as how Flutter is integrating itself into the states.
On a recent trip to the US, we spoke with many US bettors who are incredibly frustrated with both the US online wagering experience and the US taxation system (regarding the treatment of winnings).
Due to KYC/AML requirements, it is very cumbersome to set up and fund an online betting account. We do not envision this changing any time soon – if anything, this initial barrier to entry is likely to become more challenging for consumers.
Furthermore, according to the IRS’ website, wagering winnings are fully taxable and a bettor must report winnings as income on their tax return. Gambling spans lotteries, raffles, horse races, online sports betting and igaming, and land-based sports betting and casinos.
An operator is required to issue bettors with a “Form W-2G, Certain Gambling Winnings” if they receive certain gambling winni..
