The 2026 FIFA World Cup will bring excitement to the United States. From June 11 to July 19, 2026, fans will fill host cities like Miami, New York/New Jersey, Dallas, and Los Angeles. However, if you place a winning bet at a legal U.S. sportsbook or casino, the IRS may take a cut before you receive your money. For many visitors, that surprise is the biggest tax issue of the trip.
The short version is simple. If you are a nonresident alien and you win U.S.-source gambling money, the default federal rule is often a 30% withholding on the gross winnings. That rule can change if a tax treaty applies. Therefore, it is important to know the rules before you place a bet.
The Short Answer: Yes, U.S. Tax Usually Applies
The IRS treats sports betting and casino winnings as gambling income. In fact, the IRS says gambling income includes sports betting and casinos. So, if you bet on your home team during the World Cup and win, the payout is usually taxable under U.S. federal rules.
For foreign persons, the IRS generally applies chapter 3 withholding at 30% on the gross proceeds from gambling won in the United States. The sportsbook or casino reports that withholding on Form 1042 and Form 1042-S. Also, gambling winnings paid to a nonresident alien individual or foreign entity are not reported on Form W-2G in the normal way used for U.S. winners.
How the 30% Withholding Works
The withholding usually happens at payout. In other words, the payer holds back tax before handing you the rest of your winnings. Because the IRS uses gross proceeds for this rule, the tax is based on the win amount, not your net day of betting. That can feel harsh if you had other losing bets during the trip.
This is why the rule matters so much for World Cup travelers. A single winning ticket in Miami, a lucky casino bet in New York/New Jersey, or a sportsbook hit in Dallas can trigger withholding even if you were only in town for a few days. Therefore, do not assume that a short visit means no tax paperwork.
What Form 1042-S Shows
Form 1042-S is the key reporting form for foreign winners. It shows the income amount and the tax withheld. Importantly, the IRS says amounts can still be reportable on Form 1042-S even if no tax was withheld because a treaty or another rule applied. So, even a “tax-free” treaty win may still create reporting.
The payer also files Form 1042, which is the annual withholding return for U.S.-source income paid to foreign persons. Therefore, the process is usually handled by the sportsbook or casino, not by the visitor at the counter.
What to Expect at the Counter
For larger gambling wins, the sportsbook or casino may ask for identification and tax paperwork. The IRS instructions for gambling forms note that sports wagering and certain other wagering transactions can trigger ID requirements. So, keep your passport and travel documents handy when you cash out.
Can a Tax Treaty Reduce the 30% Rate?
Yes, sometimes. The IRS says a tax treaty between the United States and your country of residence may reduce the rate or remove the tax entirely. However, the rule depends on residency, not just citizenship. Therefore, you should check the IRS treaty tables or Publication 901 before you travel.
The IRS currently says gambling income of residents of the following countries is not taxable by the United States: Austria, Belgium, Bulgaria, the Czech Republic, Denmark, Finland, France, Germany, Iceland, Ireland, Italy, Japan, Latvia, Lithuania, Luxembourg, the Netherlands, the Slovak Republic, Slovenia, South Africa, Spain, Sweden, Tunisia, Turkey, Ukraine, and the United Kingdom. Residents of Malta are taxed at 10%. The Hungary and Russia treaty exemptions are no longer in operation.
Important: the treaty list is about residency, not simply the passport you hold. If you live in a treaty country, you may qualify. If you do not, the default 30% withholding usually applies.
How to Claim Treaty Benefits at Source
To claim a reduced rate or exemption at the time of payment, the IRS says the claimant must provide Form W-8BEN. The form should include a U.S. or foreign taxpayer identification number when required, and the foreign person must certify treaty residency and beneficial ownership. Therefore, do not wait until after the payout if you think a treaty applies.
In practice, that means the W-8BEN helps the payer apply the correct rate from the start. Furthermore, if the treaty is valid, the payer may withhold less or nothing, but still issue Form 1042-S for reporting.
What About Casino Table Games?
Not every casino win gets the same result. The IRS says no tax is imposed on certain nonbusiness gambling income from blackjack, baccarat, craps, roulette, or the big-6 wheel when a nonresident alien plays in the United States. However, sports bets do not fall into that special carve-out. So, a World Cup sportsbook win is usually treated differently from a table-game win.
That difference matters in host cities where tourists may visit casinos and sportsbooks during the tournament. Miami, New York/New Jersey, Dallas, and Los Angeles can all put you close to entertainment, nightlife, and betting opportunities. Therefore, know which type of gambling income you are earning before you assume the tax result.
What If Too Much Tax Was Withheld?
If withholding was too high, you may need to file a U.S. return to claim a refund or report additional tax information. The IRS says a nonresident alien with U.S. income on which tax liability was not satisfied by withholding generally must file a return. For gambling winnings, the filing form is usually Form 1040-NR, along with Schedule NEC when required.
This is also why good records matter. Save your betting slips, payout statements, and Form 1042-S. If you later need to verify what was withheld, those documents will be important.
Practical Checklist for World Cup Visitors
- Check your country’s treaty status before you bet. The IRS treaty tables show whether your home country may qualify for a lower rate or exemption.
- Bring your passport and tax ID paperwork. The sportsbook or casino may need identification and a valid W-8BEN.
- Expect gross withholding, not net profit treatment. The 30% rule generally applies to the gross winnings.
- Keep Form 1042-S for your records. It shows the amount paid and the tax withheld.
- Do not confuse sports-betting tax with table-game exceptions. Some casino games have special NRA treatment, but sports bets usually do not.
Frequently Asked Questions
Do foreign tourists pay tax on sports bets in the U.S.?
Usually yes. For nonresident aliens, the IRS generally applies 30% withholding on gross gambling winnings from U.S. sources unless a treaty or special rule applies.
Will I get Form 1042-S after winning a sportsbook bet?
Usually yes, if your winnings are subject to NRA withholding or reportable under the IRS rules. Form 1042-S shows the payout and any tax withheld, even when treaty relief reduces the withholding to zero.
Can my home country reduce the 30% rate?
Yes, if the United States has a tax treaty with your country and you qualify as a resident of that country for treaty purposes. The IRS treaty tables and Publication 901 explain the current country list.
Do casino table games follow the same rule as sports betting?
No. The IRS says some nonbusiness table-game winnings, such as blackjack, baccarat, craps, roulette, and the big-6 wheel, are not subject to tax in the same way. Sports bets generally do not get that special carve-out.
Final Takeaway
If you are visiting the United States for the 2026 World Cup, a winning sports bet can come with a tax surprise. In many cases, the sportsbook or casino will withhold 30% on the gross win, then issue Form 1042-S. However, a valid tax treaty may reduce or remove the tax if you qualify. Therefore, check your treaty status before you place the bet.
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Disclaimer: This article is strictly for educational and informational purposes only. This website does not provide tax or legal services. Readers should consult a certified CPA or tax professional for their specific situations.
