DraftKings Sportsbook is legal in New York. The state authorized mobile sports betting in January 2022, and DraftKings holds one of the licenses issued by the New York State Gaming Commission.1New York State Gaming Commission. Sports Wagering If you are at least 21 and physically inside New York, you can open an account and place wagers through the app or website. A few restrictions matter before you do, especially around college sports and taxes.
Who Can Place a Bet
You must be 21 or older. New York’s statute defines anyone under 21 as a “minor” and lists minors as prohibited bettors.2New York State Senate. New York Racing, Pari-Mutuel Wagering and Breeding Law 1367 – Sports Wagering Residency doesn’t matter, but your physical location at the moment of the wager does. The app uses GeoComply software to confirm you’re inside state borders every time you open it.1New York State Gaming Commission. Sports Wagering Cross into New Jersey or Connecticut and your betting function shuts off until you return.
Several categories of people are barred regardless of age or location. Athletes, coaches, referees, team and league personnel, medical professionals who serve players, and their family members count as “covered persons” and cannot wager on events tied to their sport.2New York State Senate. New York Racing, Pari-Mutuel Wagering and Breeding Law 1367 – Sports Wagering Anyone enrolled in New York’s voluntary self-exclusion program is also locked out.
What You Can and Cannot Bet On
Standard markets are all available: moneylines, point spreads, over/unders, parlays, live in-play wagers, and player props for professional sports. The real restriction is college athletics.
New York defines a “prohibited sports event” as any game in which a New York college team participates, no matter where that game is played, and any high school sporting event.2New York State Senate. New York Racing, Pari-Mutuel Wagering and Breeding Law 1367 – Sports Wagering If Syracuse plays a road game in North Carolina, you still can’t bet on it. If two out-of-state college teams play at a venue inside New York, that game is off-limits too.1New York State Gaming Commission. Sports Wagering
Collegiate tournaments are open as long as no New York college team is in the specific matchup you’re betting.2New York State Senate. New York Racing, Pari-Mutuel Wagering and Breeding Law 1367 – Sports Wagering During March Madness, a game between two out-of-state schools is fair game even if a New York team is elsewhere in the bracket. The moment that New York team takes the court, that particular matchup closes.
Deposit Limits and Account Speed Bumps
Credit card deposits are capped at $2,500 per operator per year under state law. Debit cards, bank transfers, and other payment methods are not subject to the cap, and operators cannot extend any line of credit to bettors.3New York State Senate. New York Racing, Pari-Mutuel Wagering and Breeding Law 1367-a
Separately, once your lifetime deposits with a single operator cross $2,500, the platform must pause your account and show you a notification. You can’t place another bet until you acknowledge the milestone and either set voluntary responsible gaming limits or decline to.3New York State Senate. New York Racing, Pari-Mutuel Wagering and Breeding Law 1367-a It’s a pause, not a block.
Taxes on Your Winnings
Every dollar you win is taxable income at the federal level, whether or not you receive a tax form. If your net winnings from a single wager reach at least $2,000 and are at least 300 times what you wagered, DraftKings must file a Form W-2G with the IRS reporting the payout.4Internal Revenue Service. Instructions for Forms W-2G and 5754 The $2,000 threshold is new for 2026 and will adjust annually for inflation.
When your net winnings exceed $5,000 and hit the 300-to-1 ratio, the operator must also withhold 24 percent for federal income tax before paying you.4Internal Revenue Service. Instructions for Forms W-2G and 5754 That withholding is a prepayment against your annual tax bill, not a separate tax. If your bracket is higher than 24 percent, you owe the difference at filing. If it’s lower, you’ll get some back.
New York taxes gambling winnings as ordinary income too, with withholding on larger payouts. New York City residents owe an additional city income tax on top of that. Plan for both when you figure out whether you’re actually up for the year.
Deducting Your Losses
You can offset winnings with losses, but only if you itemize deductions. Starting with the 2026 tax year, a new limit applies: you can deduct only 90 percent of your wagering losses, and only up to the amount of your wagering gains that year. Win $10,000 and lose $10,000, and your deductible loss is $9,000, not the full amount. Take the standard deduction and you can’t deduct any gambling losses at all.5Internal Revenue Service. Internal Revenue Bulletin 2026-19 Keep detailed records of every wager, win or lose, if you plan to claim a deduction.
Self-Exclusion and Problem Gambling Help
If betting stops being entertainment, New York runs a voluntary self-exclusion program. You can ban yourself from all state-regulated gambling, including sportsbooks, casinos, and racetracks, for one year, three years, five years, or permanently. Enroll online through the Gaming Commission, in person at most casinos, or by mail. You’ll need photo ID and will have your picture taken so venues can identify you.
Try to gamble while self-excluded and you’ll be removed from the premises or locked out of the platform, with any winnings forfeited. A lifetime exclusion cannot be reversed, so treat that option carefully.
The state’s Office of Addiction Services and Supports runs a free, confidential helpline 24/7. Call 1-877-846-7369 or text HOPENY to 467369.6New York Office of Addiction Services and Supports. Gambling Harms The National Council on Problem Gambling also runs a national line at 1-800-522-4700.
If Something Goes Wrong With a Bet
If you think DraftKings settled a bet incorrectly, held funds improperly, or broke a state rule, you can escalate past customer support. The New York State Inspector General’s office handles gaming complaints. File online, call 1-800-367-4448, or mail the Inspector General in Albany. Include dates, dollar amounts, screenshots, and any correspondence with the sportsbook. Investigators may follow up for more.