Do I need to file taxes in every state where I physically placed app-based sportsbook bets (DraftKings, FanDuel)?

7 This is actually a really interesting tax question that comes up more as mobile sports betting expands. The short answer is: technically yes, you should file in each state where you were physically located when you placed winning bets. Most states follow the "source rule" for gambling winnings, meaning winnings are taxable in the state where you were physically present when you won. This applies to both retail sportsbooks and mobile apps. The apps are required to track your physical location (that's why they have geofencing technology) to ensure legal compliance, though they may not specifically track it for tax purposes. That said, the practical reality is that tracking and reporting small winnings across multiple states is extremely challenging, and many states have minimum filing thresholds. If you received a Form W-2G from the sportsbook, it likely shows the state where the company is licensed, not necessarily where you were located.

15 After dealing with this exact headache last year, I discovered taxr.ai (https://taxr.ai) and it was a game-changer for sorting out my multi-state gambling situation. I had winnings from FanDuel and DraftKings across 4 different states while traveling and was completely lost on how to handle it. Their system analyzed my gambling records and helped identify which winnings belonged to which states based on the timestamps and location data from my phone's location history. It even helped me figure out which states had minimum filing thresholds that I didn't need to worry about.

4 I was extremely skeptical about taxr.ai when I first heard about it, but after struggling to figure out my DraftKings taxes across multiple states, I decided to give it a shot. I'm actually really impressed with the results. The system analyzed my betting history and cross-referenced it with my travel data, then generated state-specific reports showing exactly which winnings belonged where. It saved me from filing unnecessarily in two states where I was below the minimum filing threshold. I still had to file in three states, but at least I knew exactly what went where. Their customer support even answered my questions about state reciprocity agreements for gambling taxes.

18 After spending HOURS on hold with various state tax departments trying to get answers about this exact issue, I found Claimyr (https://claimyr.com) and they got me through to my state's gambling tax specialist in under 10 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c - they basically call the IRS or state tax departments for you and navigate the phone trees, then call you when they have a human on the line. I was able to ask specific questions about my situation with betting on FanDuel while traveling for work. The tax department confirmed that technically I should file in each state, but also clarified the minimum filing requirements that meant I only actually needed to file in states where my winnings exceeded certain thresholds.

6 I was totally against using any kind of service to help with this, but after getting three different answers from three different CPAs about my gambling taxes, I broke down and used Claimyr to reach my state's tax department. Shockingly, it actually worked exactly as advertised. They got me through to a specialist in about 15 minutes (versus the 2+ hours I spent the previous day). The tax department explained that for my state, I only needed to file if my winnings in their state exceeded $1,200 for any single bet. Since all my wins were smaller amounts, I didn't need to file there at all. Saved me $350 in unnecessary filing fees with my accountant. I'm still annoyed that this information isn't just clearly posted on their website, but at least I got a definitive answer.

2 I'm a tax preparer in a state with legalized sports betting, and this question comes up constantly. Here's what we generally advise clients: 1. Technically, you should file in each state where you physically placed winning bets. 2. Practically, unless you received a W-2G (only issued for certain large winnings), most states have no practical way to track your location when placing bets. 3. Most states have minimum filing thresholds ranging from $600-$5,000 in income. 4. The sportsbook apps are concerned with where you are for LEGAL betting purposes, not tax purposes. My advice? If you have significant winnings (over $2,000 in a single state), file there. For smaller amounts spread across multiple states during brief visits, it's generally reasonable to report on your home state return.

5 Does anyone know if the sportsbook apps are required to track specific bet locations for tax purposes? I use FanDuel and travel a lot for work, and I'm trying to figure out if they're reporting where I physically placed each bet or just reporting everything to my home state.

This is a complex area that many people are navigating for the first time as mobile sports betting expands. From what I understand, the technical legal requirement is to file in each state where you were physically present when placing winning bets, but the practical enforcement is limited. For your situation with $3,500 in total winnings across multiple states, I'd recommend checking each state's minimum filing thresholds first. Many states don't require filing unless you exceed certain amounts (often $600-$1,200). If your winnings in any individual state are below their threshold, you may not need to file there at all. The key thing is that most sportsbooks report your winnings based on your home address or where they're licensed, not tracking every location where you placed bets. So unless you received W-2G forms specifying different states, there's likely no automatic data trail connecting your winnings to specific travel locations. That said, you're still technically obligated to report accurately. Consider consulting with a tax professional who handles gambling income if the amounts are significant enough to justify the cost.

This is definitely one of those "technically vs. practically" situations that's becoming more common with mobile betting. I went through something similar last year when I had winnings from multiple states during business travel. The reality is that most states' tax systems aren't set up to handle the granular tracking that would be required for mobile betting across state lines. The sportsbooks are focused on legal compliance (making sure you're in an authorized state when betting), not creating detailed tax trails for every bet placement. For your $3,500 in winnings, I'd suggest this approach: 1. Check each state's minimum filing requirements - many don't require filing unless winnings exceed $600-$1,200 2. Look at what your 1099s actually show - they'll typically report to your home state or the sportsbook's license state 3. Keep records of your travel and betting activity in case questions arise later The enforcement risk is relatively low for smaller amounts like yours, especially if you're properly reporting the income somewhere. Most audits in this area focus on unreported income rather than which specific state it was reported in. If you're really concerned about compliance, consider consulting with a tax professional who handles gambling income, but for many people in your situation, reporting everything on your home state return is the most practical approach.

As someone who's dealt with this exact situation, I can tell you that the multi-state mobile betting tax question is becoming incredibly common. The legal framework just hasn't caught up with the technology yet. Here's what I learned after consulting with a tax attorney who specializes in gaming: while you're technically supposed to file in each state where you physically placed winning bets, the practical enforcement is nearly impossible. The sportsbooks use geolocation to verify you're in a legal betting state, but they don't create detailed tax reports showing exactly where each bet was placed. For your $3,500 in winnings, I'd recommend this approach: 1. Check if any single state had winnings over $1,200 - if so, definitely file there 2. Look at your 1099 forms to see which state(s) they're reported to 3. For smaller amounts spread across multiple states during brief travel, reporting on your home state return is generally the most practical approach The key is that you're still reporting the income - you're just not filing multiple state returns for small amounts that likely fall below most states' minimum thresholds anyway. Keep good records of your travel and betting activity just in case, but the audit risk for this type of situation is quite low for amounts like yours. Most tax professionals I've spoken with agree that the current system isn't designed to handle the complexity of mobile betting across state lines, and enforcement agencies are focusing on much larger cases of unreported gambling income rather than which specific state properly reported smaller winnings.