Esports Betting / Legendz Casino Review / Legendz Taxes 2025: Learn About Tax Implications

Legendz Taxes 2025: Learn About Tax Implications

Name: Legendz Casino
Brand: Legendz Casino

Sports Writer

Last Updated on 02/11/2025

Fact checked by: Alyx Tzamantanis

Taxes are like the broccoli of financial life: necessary but not exactly pleasant. That said, if you’re spending time on Legendz, especially redeeming prizes, you’ve got to know how Legendz taxes work.

Staying informed now can save you a ton of headaches later, which is why I dug into the tax side of things for Legendz. Like most players, I want clarity. Is my fun on Legendz going to land me in hot water with the IRS? Here's everything I uncovered (grab a coffee, and let’s make this as painless as possible).

Table of Contents

Legendz pros and cons
The truth about Legendz taxes
What I learned about reporting taxes on Legendz
Legendz taxes: States with stricter laws
Legendz taxes: Why you need to stay organized
Final Thoughts: Legendz taxes are part of the game
FAQs on Legendz taxes

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Legendz Casino Highlights

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Legendz pros and cons

Legendz: Pros and Cons

No taxes on Gold Coins
Easy redemption tracking
No automatic tax charges

You’re responsible for reporting

The truth about Legendz taxes

First, let me state very clearly that Legendz doesn’t charge you taxes directly. So, if you’ve been wondering, “Does Legendz charge taxes?”, the answer is no. But (and it’s a big but) the IRS still expects you to report any prizes you redeem from Legendz social casino.

Legendz operates as a social casino using two types of currency:

Gold Coins – These are purely for entertainment and have no monetary value. You can’t redeem them, so there’s no tax involved here. You can receive them from bonuses, including referral bonuses obtained via a Legendz referral code, and you can purchase optional bundles.
Sweepstakes Coins – Now, this is where it gets real. Sweeps Coins are used for promotional entries and can be redeemed if they meet Legendz’s redemption criteria. If you exchange Sweepstakes Coins for prizes, the IRS sees that as taxable income. However, Sweepstakes Coins can never be purchased and are only obtained for free.

So, if you’ve been playing and exchanging your Sweepstakes Coins for cash, the answer to, “Do you have to pay taxes on Legendz?” is absolutely yes. But Legendz isn’t going to report those redeemed prizes for you. It’s your responsibility. Remember that you have to be a resident of one of the Legendz legal states to be able to exchange your eligible Sweeps Coins for cash prizes or gift cards.

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What I learned about reporting taxes on Legendz

Here’s where it gets interesting (and, okay, a bit stressful). The IRS doesn’t mess around with winnings, even from sites like Legendz sportsbook and social casino. They consider every redeemed prize taxable, no matter the amount. That said, there are some thresholds and rules you should know:

If you redeem Sweeps Coins for prizes totalling less than $600: You still need to report it on your tax return as “Other Income.” No one’s going to send you a form for this, so you’ll have to keep track of it yourself.
If you redeem Sweeps Coins for prizes worth $600 or more in a year: Legendz may issue a Form W-2G. This form makes it easier to report your redeemed prizes, but don’t rely on them to send it automatically. I learned that players often have to request it through customer support.

Legendz taxes: States with stricter laws

While Legendz doesn't withhold taxes on your prizes, you're still on the hook for reporting and paying taxes based on where you live and play. This means not only do you have to follow federal tax laws, but you’ll also need to comply with your own state’s tax regulations. Let's break down how some states handle taxes on social casino prizes like those from Legendz.

🌅 California

In the Golden State, all winnings are considered taxable income. This means that if you're redeeming prizes from Legendz, you're expected to report those cash prizes on your state tax return. While California doesn't impose a separate tax, your winnings are taxed as part of your overall income, which could bump you into a higher tax bracket depending on the amount.

🗽 New York

New York treats winnings as taxable income as well. Whether you've hit the jackpot at a traditional casino or scored big on Legendz, those cash prizes need to be reported. The state applies its income tax rates to your winnings, and depending on the amount, you might also face additional local taxes. The state tax rate can be as high as 8.82%, depending on your income bracket.

🤠 Texas

Here's where it gets interesting. Texas doesn't have a state income tax, which means your winnings, including those from Legendz, aren't subject to state taxation. However, you're still on the hook for federal taxes, so don't forget to report your cash prizes to the IRS.

⛰️ South Dakota

South Dakota imposes a 4% tax rate on all sports betting winnings. This means that if you're redeeming prizes from Legendz in South Dakota, you'll need to account for this state tax in addition to federal taxes.

🏞️ Tennessee

In Tennessee, the tax rate on sports betting winnings is 20%, slightly lower than the federal rate. So, if you're enjoying Legendz in the Volunteer State, be prepared to factor in this state tax on your redeemed prizes.

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Legendz taxes: Why you need to stay organized

I spoke to a fellow player who redeemed over $1,000 in prizes on Legendz last year. They didn’t keep track of their transactions and had no idea they needed to report those cash prizes. Fast forward to tax season, and they were scrambling to pull together receipts and redemption histories.

To avoid that mess, here’s what I recommend:

Keep a log: Download your redemption history from your Legendz account regularly. Write down dates, amounts, and prize types. Regardless of where you live, maintaining accurate records of your Legendz activity is crucial. This includes deposits, prizes redeemed, and losses. Good record-keeping can help you accurately report income and may assist in deducting losses where allowed.
Save proof: Take screenshots of major prize redemptions or keep receipts.
Track your thresholds: If you’re nearing $600 in redemptions, be prepared to file that Form W-2G.
Consult a tax professional: I especially recommend this for prizes above $600. Given the varying state laws and the nuances of social casino gaming, it's wise to consult with a tax professional familiar with your state's regulations.

Here is a table summarizing some quick facts on Legendz taxes:

Category	Details
Tax law applicability	U.S. federal tax laws require reporting of all redeemed prizes, regardless of the amount.
Eligibility for taxation	Only redeemed Sweepstakes Coins (cash or prizes) are taxable.
Redemption process	Redeem Sweepstakes Coins for cash prizes or gift cards via your Legendz account; maintain a record of all transactions.
Required tax forms	Use Form 1040 (Other Income) for smaller prizes; request Form W-2G from Legendz for redemptions over $600.
Verification documents	Government ID, proof of address, and Social Security Number may be needed for redemptions.
Deductible losses	Losses can be deducted up to the amount of your redeemed prizes if itemized on your tax return.
Legendz responsibility	Legendz does not withhold or report taxes; players are solely responsible for tax compliance.

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Final Thoughts: Legendz taxes are part of the game

Look, no one loves dealing with taxes, but if you’re playing on Legendz, it’s part of the experience. The good news? With a little preparation and the right tools, you can handle it without losing sleep. The key takeaway here is simple: whether you’re redeeming prizes worth $5 or $500, it’s your job to report it. Just keep your records straight, stay informed about state and federal rules, and consider consulting a tax pro if you’re unsure. Legendz is meant to be fun, so please don’t let taxes ruin the ride.

That said, if you are yet to sign up on Legendz, there is a sweet welcome bonus waiting just for you. Simply download the Legendz app or head to the official Legendz website using our link, register, and receive 500 free Gold Coins and 3 Sweep Coins to explore the social sportsbook.

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FAQs on Legendz taxes

🤔 Do I have to pay taxes on Legendz prizes?

Yes, if you redeem Sweepstakes Coins for cash or prizes, those are considered taxable income by the IRS. You’ll need to report them, even though Legendz doesn’t withhold taxes on your behalf.

🤷‍♀️ What tax forms do I need for Legendz prizes?

For prize redemptions over $600 in a year, Legendz may provide a Form W-2G upon request. Otherwise, report smaller amounts as “Other Income” on your Form 1040.

💸 Do state taxes apply to Legendz prizes?

It depends on where you live. Some states, like Texas, don’t have state income tax, while others, like California, tax redeemed prizes as part of your overall income. Check your state’s tax laws for specifics.