Nearly 80% of Americans Are Betting on Sports, But Few Understand What Comes After the Win

Sports betting has become a national pastime — and March Madness is one of the biggest moments of the year for casual and committed bettors alike. A new national survey from DIY tax software provider TaxAct reveals that 79% of Americans have placed or plan to place a sports bet, signaling that what was once niche is now firmly mainstream. The survey of 750 U.S. adults paints a clear picture: sports betting is common, frequent, and often motivated by entertainment more than income.

More than half of respondents (54%) said they place bets a few times a year, with another 30% betting weekly during specific sports seasons. A dedicated 7% say they bet every chance they get, suggesting that for some, sports wagering is as much a routine as it is a pastime.

And while winning money is not the only draw. 30% of respondents bet for the thrill of it, and 25% said betting makes watching sports more exciting. Social drivers are strong too: 17% enjoy the competitive aspect, while 12% use betting to connect socially. Only 16% of respondents said their primary goal is earning extra income.

Despite sports betting’s explosive growth, awareness of how it impacts taxes is low — and misconceptions are common. Only 18% of respondents knew that all winnings must be reported to the IRS, and just 25% correctly identified sports betting winnings as taxable income. Even fewer — 10% — were aware that losses can be claimed as an itemized deduction, and 11% knew the tax rate on gambling winnings can reach up to 37%. Only 2% of respondents were able to correctly identify all these statements as true.