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"It's not advice I would give," Ordine said. Individual Income Tax Return: This is the form online sports betting legal states or online sports betting legal states tax preparer will be filling out come tax time to document online sports betting legal states annual earnings. But casual sports gamblers are sometimes unaware they can't keep all their winnings. The $600 threshold to get a tax form doesn't apply to all gambling situations – there are different thresholds for different games. It could also impose a 10% "discretionary negligence penalty" or a 25% "intentional disregard penalty. People might get away with evading taxes on small wins, but usually not for long, the official said. what states allow online sports bettingonline casino listyoutube, rumble & vimeo.