Betting Bonuses in the US

The IRS have a clear set of rules related to winnings from gambling, that have been in place since before the recent regulation and expansion of online gambling in the US. These rules are also applicable when playing online, which means that winnings from online betting, casino games, horse racing and lotteries is classified as taxable income. 

The general rule is that winnings over $600 dollars requires users to submit a W-2G form to the IRS. This form is sent out to you by the betting site automatically when you win the required amount. With bigger wins over $5000 dollars, the sportsbook or casino may be required to withhold 28% for federal income tax. The gambling company also needs to report winnings above a certain threshhold for different types of games to the IRS. This is why sportsbooks may require your social security number upon registration, and if this has not been provided, 31% may be withheld instead. 

It is possible to write off loses to a certain extent, but the deductions made can never exceed the amount that you have won. Your total gambling winnings need to be reported anually on the 21st row of form 1040. Your state, or the state in which you gambled, may also have specific tax rates and reporting requirements. 

Betting bonus is a generic term to describe the various promotions and offers that sportsbooks market on their websites. But within that category, there are many different types of bonuses. They work in different ways, have different rules and require different means of being converted to withdrawable cash. Below, we go through the most common types of betting bonuses and what they entail.

Bonus bets used to be called "free bets" in the past, until this was deemed misleading, as you actually have to deposit funds to claim them, making them by definition not free. But regardless of the name change, bonus bets still work the same way as they used to.

Bonus bets simply means that the player places a bet where the sportsbook provides the stake. After claiming the offer, players usually need to place a qualifying bet. After the bet has won or lost, the wagered amount is matched by the sportsbook in the form of a bonus bet credited to the player. 

When the player has been credited their bonus bet, they simply select an odds they want to bet on and use the bonus bet instead of their own funds. If you lose, you lost the sportsbook's money instead of your own. If you win, you get to keep the profits, minus the bonus bets value.

When placing a qualifying bet to claim a bonus bet, there is usually a minimum and maximum amount required, as well as a minimum odds. The bonus bet itself usually also comes with a minimum odds.

No Sweat Bets, sometimes called Second Chance Bets, is another type of betting bonus that had to change its name. The whole concept of a No Sweat Bet is that the sportsbook pays back a lost stake, which is why they used to be referred to as "risk free bets" in the past. 

A No Sweat Bet works in a similar way as a bonus bet. Players claim the offer, place a bet, and activates the offer before locking in the slip. If it's a win, the player keeps the profit. If it was a loss, the sportsbook pays back the wagered amount in the form of a non-withdrawable No Sweat Bet, and the player can have another go at it. No sweat! 

The calendar year is full of massive sports events, and during these seasons, sportsbooks often offer exclusive betting promotions for new- and existing customers alike. Especially peak events such as the Super Bowl, March Madness, World Series, NBA finals and Stanley Cup finals offer great opportunities to find a promo. 

Betting promotions are often claimed by using special sportsbook promo codes given out by the betting site. While at the campaign page or when making a deposit, look for a text field where players enter their bonus code to claim the offer. Sometimes only new customers are eligible to use promotion codes.  

A Bet/Get promotion is about as clear-cut as it gets. Bet something to get something. Usually the amount you receive is significantly larger the the amount you have to bet, such as bet $5 to get $100, or bet $10 to get $200. The outcome of your bet is not a deciding factor in whether you get your bonus or not, simply bet and get. Get Bet bonuses are most commonly given out to new customers at a sportsbook.

A sportsbook deposit bonus reward players, often new customers, with additional bonus cash when they make a deposit. It's common for 100% of the amount deposited to be matched by the sportsbook, which is why they are also sometimes called matched deposit bonuses. 

Deposit bonuses usually have a higher ceiling than other types of betting bonuses, and players are free to bet them on whichever odds they want. For that reason, the turnover requirement is also significantly higher. The clear advantage is a much bigger freedom with regards to what to bet on, and how. Deposit bonuses usually come with a minimum odds.

An odds boost, also known as profit boost, takes an existing odds and boosts it to a much more profitable level. Boosts come in various shapes and forms. Many sportsbooks offer daily boosts and extra boosts on popular events. Some operators spice it up by offering massive boosts as an alternative to a welcome offer. Regardless of which type we're talking about, an odds boost is a great way to make a somewhat predictable game a lot more exciting, and the stakes even higher. 

A sports betting sign-up bonus isn't really a specific type of bonus in the same sense as the other examples on this list. This type of offer is specifically targeted to new customers and is only available when signing up and make your very first deposit. Usually sign-up bonuses are bigger and more generous than the ones offered to existing customers. A sign-up bonus can basically mean any type of bonus mentioned in this list.

Word of mouth is invaluable, and sportsbooks are very much aware of this. This is why many of them offer a referral bonus to players who refer a friend to their sportsbook. Refer-a-friend bonuses are a great way for players who have already claimed all available promotions to keep getting rewarded by their betting site. In most cases, both the referrer and the referee end up benefiting. Claiming a referral bonus usually means getting a referral link from your sportsbook and your friend using it to sign up and make a deposit. 

No, it's not possible to claim a betting bonus and then withdraw it. This is prevented by a turnover requirement, aka wagering requirement, that states how many times you need to bet the bonus funds in the sportsbook before they are converted into withdrawable cash. After the turnover requirement has been met, the bonus money on the account will be converted into withdrawable cash unless otherwise specified in the terms and conditions. 

Certain terms and conditions are applied when playing at a sportsbook or claiming a betting bonus. You approve of the general T&C's when creating your account, and the bonus terms when you decide to claim a welcome offer or promotion. We always recommend our visitors to read the T&C's, but these can be quite long and wordy. Here are some of the most important terms that we recommend looking into before signing up.
 

Important Terms & Conditions for a sports betting bonus
 

• Turnover / Wagering Requirements:
  The wagering requirement, sometimes called turnover, is what prevents players from being able to claim a bonus and just cashing out right away. The specify how many times you need to wager the bonus amount before it becomes withdrawable. For example, if you claim a $100 dollar betting bonus with a 5x turnover requirement, you need to bet a total of 100 x 5 = $500 dollars. Both bets that you win and lose count towards the turnover.
   
• Minimum Odds:
  Some bets naturally have a much higher chance of winning than others. The easiest bets are usually excluded from bonuses using a minimum odds. Let's say for example that a betting bonus has a minimum odds of +100. Your bet then needs to have +100 or higher odds in order to qualify. You can still place bets under +100, but they will not be using bonus funds or count towards the turnover.
   
• Minimum Deposit: 
  Most betting bonuses have a minimum deposit required to be able to opt-in. If you deposit less, you won't be able to claim the offer. Similarly, the betting site itself might have a minimum deposit, usually because the payment providers charges them a small fee per customer.
   
• Minimum/Maximum Bet: 
  A betting bonus may have a limit for the smallest and/or largest amount of money you can place on a single bet with the bonus funds on your account.
   
• Maximum Win: 
  While rare, it's not unheard of that sportsbooks cap their welcome offers with a maximum win. For this reason, it's not always better to look for the most profitable odds available when playing with a bonus.
   
• Expiration Date:
  All betting bonuses, promotions and campaigns have an expiration date, usually between 7 and 60 days, depending on the state, type of bonus and sportsbook.
   
• Eligble Payment Methods:
  For various reasons, such as fees from the provider, not all payment methods are eligible when claiming a betting promotion or bonus. If you want to use a method other than the standard card payments or bank transfers, such as PayPal, you might want to double check the bonus terms and conditions.