Sports lovers in as many as 45 different US states can currently enjoy virtual coin powered, social betting legally with Rebet. But where do folk like you and I stand when it comes to Rebet, and taxes?
Well, it’s a whole lot simpler than you might think. In short, the site runs on a two tier coin system, where one type of virtual betting token (Rebet Coins) exists for entertainment purposes only, while another (Rebet Cash) can be redeemed for cash prizes in the real world. Taxes apply in the latter scenario only – and here’s how.
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What is Rebet?
Before I get into the nitty gritty of Rebet taxes at federal, state and local levels, here’s a quick overview of what Rebet is and how the app works, for those of you who aren’t already familiar.
The
Rebet app
is, in short, a social sportsbook – which essentially means it’s similar to your traditional, “real money” sports betting site, but with a few important differences. Most notably:
- There’s no USD betting here. Instead, you’ll be using either just for fun Rebet Coins or promotional Rebet Cash when placing your social bets.
- There’s no upfront purchase requirement to play, meaning there are several free ways of collecting virtual betting tokens for free on the app.
- As cash bets aren’t supported, you can’t directly win cash on the app either – you can only ever win more Rebet Coins, or Rebet Cash.
- Rebet Coins exist strictly for entertainment purposes only, while Rebet Cash can be redeemed for actual, cold, hard cash prizes after meeting the site’s playthrough and eligibility requirements. Which, of course, is where Rebet taxes come in…
If this is your first time with Rebet, the above can take a bit of time to get your head around at first. But once you’ve placed a few virtual coin based bets, and redeemed your first batch of Rebet Cash for an IRL prize, all very quickly becomes clear.
I’ll explain how to register, claim free coins and play shortly. But first, let’s get the boring (though important) bit about taxes out of the way, yeah?
Does Rebet charge taxes or handle them directly?
Nope. On its “Terms of Use” page, Rebet makes it real clear that you, as a Rebet user, are “solely responsible for any taxes which apply to your use of the service”. In some states, a percentage of any Rebet Cash prizes you redeem from the site might be temporarily withheld by Rebet, though you’ll still need to report your winnings in your return - something I’ll explore more in a bit.
For obvious reasons, before you sign up and start checking out the app’s exciting social betting odds and features, you should shape up on your federal and state level tax obligations – particularly if you’re planning on betting in Rebet Cash mode.
Do you have to pay taxes on Rebet Cash prizes?
Yes, you do. In a nutshell, it’s on you to sort out your own tax affairs regarding any Rebet Cash winnings you’ve redeemed for cash prizes in the real world. This applies regardless of whether said prizes took the shape of cash or gift cards.
Your obligations in terms of Rebet taxes start from day one of registering with the site, and you’ll need to provide the following to Rebet support before you can request your first Rebet Cash prize redemption:
- A valid social security number.
- A government issued ID proving you meet Rebet’s minimum age requirement (18+), and reside in a Rebet friendly state – the app’s off limits in ID, NV, LA, MI and MT.
Of course, tax laws will vary depending on where in the US you’re using Rebet’s app from. But as a general rule of thumb, the following will apply:
- The onus is on you to sort out your own tax affairs.
- The IRS will deem any real world, Rebet Cash prizes – whether they be gift cards or cash – as taxable.
- You’ll need to report the “fair market value” of any gift cards received as “income” when filing your federal return.
Do the rules regarding Rebet taxes differ from state to state?
Yes, they do. And as
Rebet is legal in Florida, New York, California, Utah and a ton of other states all with their own unique tax laws, it’s important to research your obligations at federal, state and local levels before social betting.
Generally, just as regular, cash based sportsbook winnings are subject to gambling taxes in the US, the same applies to any Rebet Cash prize redemptions made for real world gift cards or cash prizes, as I already explained above.
Depending on your state, though, I found that “Tax Withholding” rules may apply. If so, Rebet will, in its own words, “withhold and remit a portion of (your) prize value” each time you push through a Rebet Cash redemption request.
How much of each prize can you expect to be withheld?
Now, Rebet isn’t entirely clear in its Terms of Service about what percentage will be withheld, but I’ve found that other, similar sites (like Chumba Casino, to give one example), will automatically withhold 24% of your prize amount on cash prizes of $600 or more in value. As 24% is a standard federal tax rate on “Gambling Winnings”, I’d expect a similar setup on Rebet at a federal level, though state and local taxes may differ.
Of course, you can always reach out to Rebet customer support on a case by case basis if you need further clarification on this. Or, alternatively, seek advice from your local tax authority.
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How should you report your Rebet winnings?
Ordinarily, any Rebet Cash prizes you’ve redeemed in the real world can go down as “Other Income” on either Form 1040 or Form 1040-SR when doing your federal taxes. As mentioned earlier, the “fair market value” of any gift cards you’ve received from Rebet Cash redemptions should be reported as “income”, as should any cash prizes themselves.
Right now,
Rebet is legal in Georgia, as well as several other states. In some regions, you might be required to fill out an additional form known as “W-2G” when doing your taxes. This usually applies when a percentage of your winnings has already been withheld by Rebet under the “Tax Withholding” rules I mentioned earlier. If so, the brand should provide you with your “W2-G” form - though you may have to request it first.
Just to stay on the safe side, before you register and play, I’d always advise double checking locally where you stand in your state in regard to:
- Tax Withholding rules.
- Whether form W-2G or similar is required.
- How you’ll be categorizing your Rebet Cash prizes on your return.
The good news is that on their own individual websites, state level tax departments, like New York’s Department of Taxation and Finance for example, tend to be super transparent and helpful about what is and isn’t required when paying taxes on what they deem “Gambling winnings”.
If you’re in any doubt about this, mind, it might be worth speaking to a specialist adviser locally, or contacting Rebet’s friendly support team as suggested earlier.
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What are the all round pros and cons of betting with Rebet?
Rebet has an awful lot to offer, and in my view, you shouldn’t let the prospect of having to pay Rebet taxes on Rebet Cash winnings put you off. Particularly as sweepstakes casino or social sportsbook winnings of this kind are always taxable in the US regardless of which site or app you’re playing on, anyway.
For me, Rebet’s top pros and cons are:
How to sign up and start enjoying social betting with Rebet today
Rebet’s sportsbook
has an awful lot going for it, then. Setting those inevitable tax obligations aside, it’s legally available in 45 different US states, is super easy to use thanks to its nifty iOS and Android apps and covers pretty much every major sports market under the sun.
If you’re not part of the Rebet community already, here’s how you can sign up with the site today, and unlock a generous bonus from day one:
Once your account’s set up, you’ll automatically qualify for the app’s welcome bonus. Much like Rebet’s tax rules, this bonus varies from state to state – though I received 100 Rebet Coins and 1 free Rebet Cash when I recently registered here from my home state of Arizona.
Final thoughts – Rebet taxes aren’t to be overlooked when you play
With its exceptional market coverage and unique social betting features and bonuses, Rebet is a sports lovers’ haven. But it’s important not to overlook the important stuff, by which I mean taxes, if you’re using the site in Rebet Cash mode, and regularly redeeming your Rebet Cash winnings for prizes that can be used in the real world.
So, don’t forget to provide Rebet with all your necessary, state level information post sign up, and remember to keep a record of your Rebet Cash winnings and prize redemptions throughout the financial year.
What’s more, be sure to read up fully on what both the IRS and state level authorities have to say about social betting related taxes in your region before you play – just so you guys know exactly what to expect from day one.
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Rebet taxes FAQ