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Do you have to pay taxes on offshore sportsbooks?

Ryan Roz Ryan Roz
Ryan Roz
Ryan Roz
Managing Editor
Ryan Roz is a gambling industry writer with more than 20 years of experience covering offshore sportsbooks, online casinos, and sports betting markets. His work focuses on breaking down how betting platforms operate, including bonus terms, wagering requirements, odds, and payout rules, so readers know what to expect before signing up or placing a bet. Over the years, Ryan has closely followed the evolution of offshore and international sportsbooks, using operator disclosures, published terms, and long-standing industry practices to guide his analysis. He specializes in explaining complex betting concepts in clear, practical language without hype or unrealistic promises. Ryan’s content is written for informational purposes only and emphasizes transparency, accuracy, and responsible gambling, helping readers make informed decisions rather than pushing promotional outcomes.
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Managing Editor, Updated April 27, 2026
Fact checked by: Alex Harper
Alex Harper
Alex Harper
Betting Education & Strategy Editor
Alex Harper is a betting education editor with more than 10 years of experience covering sports betting concepts, wager types, and responsible gambling practices. His work focuses on explaining betting mechanics clearly and accurately, including point spreads, totals, futures, parlays, and live betting markets. Alex’s guides are written to help bettors understand risk, probability, and betting structure rather than promote betting behavior.
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Affiliate Disclosure

Our team of professional gambling site reviewers conducts independent research on every brand we feature on Sportsbooks.ag. We work with some partners on an affiliate basis but this does not affect our listings or ratings.

Yes, you must pay taxes on all gambling winnings, including those from offshore sportsbooks, because the IRS treats all betting income as taxable regardless of where you placed the bet. This applies to cash, crypto, and any other payouts.

The Internal Revenue Service requires you to report gross winnings on your federal tax return even if the offshore site doesn’t issue a W-2G form like regulated sportsbooks such as FanDuel or DraftKings might.

Key details bettors often miss:

  • Self-reporting is required: Offshore sites typically don’t report to the IRS
  • All winnings count: Includes small bets, parlays, and crypto payouts
  • Losses can be deducted: But only if you itemize and up to your winnings
  • Records matter: Keep bet slips, transaction history, and withdrawal logs

A critical distinction: even though offshore sportsbooks operate outside U.S. regulation, your tax obligation doesn’t change failing to report winnings can lead to penalties or audits.