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Payoff is calculated differently for the betting odds in the favorite’s and underdog’s markets, but always centered around the value of $100. For instance, (-200) NBA Finals odds mean that for every $200 wagered on a team, the house will pay out $100 if that team wins. (-500) odds stand for $100 payoff on every $500 wagered at the betting book.

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Fantasy sports winnings of $600 or more are reported to the IRS. If it turns out to be your lucky day and you take home a net profit of $600 or more for the year playing on websites such as DraftKings and FanDuel, the organizers have a legal obligation to send both you and the IRS a Form 1099-MISC. If you receive your winnings through PayPal ...

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