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(Des Moines, IA) -- Starting January 1st, big sports betting wins in Iowa will come with an automatic tax bite.
Under a new state law, any winnings are now treated like earned income, just like a paycheck or bonus. If you win more than $5,000, or at least 300 times your original bet, federal taxes are already withheld. Now, Iowa state taxes will be taken out at the same time.
Previously, winners kept the full payout upfront and settled up at tax time. That changes next year.
