The short answer
When a $100,000+ bet settles, FanDuel credits the full payout to your account balance and you can request a withdrawal from there. The win is taxable income, and depending on your odds FanDuel may report it to the IRS on a Form W-2G and hold back 24% for federal taxes.
Expect identity checks before a large withdrawal, and possibly lower bet limits afterwards. Before spending any of it, set aside money for taxes.
1. The payout hits your balance
Settled winnings are credited automatically.
Once the bet settles, the stake plus winnings show in your FanDuel balance. Nothing has to be claimed. From the balance you can bet again or request a withdrawal.
Sportsbooks publish maximum payout limits in their house rules. A six-figure win is usually within those limits, but check FanDuel's current terms for your state, since limits can change.
2. Withdrawal checks and account review
Large cash-outs get a closer look.
Big withdrawals often trigger identity and payment verification, which can add time. Have your ID and a verified bank account ready.
Large wins can also lead to a review of your betting activity. Sportsbooks may then lower your maximum bet size. That's common, and it doesn't mean your winnings are at risk if you followed the rules.
3. Form W-2G and federal withholding
When FanDuel reports the win and holds back tax.
For sports bets, FanDuel issues a W-2G when the win is large compared with what you risked. Winnings must be at least the IRS threshold ($2,000 for 2026) and at least 300 times your stake. Federal withholding of 24% applies when winnings are over $5,000 and also meet the 300-times rule.
$20,000 bet pays $100,000 → 5× stake → usually no W-2G or withholding, still taxable
Illustrative examples. Withholding is a prepayment, not your final tax bill.
Tax rules at a glance
| Taxable? | Yes. All gambling winnings are taxable income, whether you withdraw them or leave them in the account. |
| Form W-2G | Issued when winnings are at least $2,000 (2026 threshold) and at least 300 times your stake. |
| Federal withholding | Generally 24%, when winnings are over $5,000 and at least 300 times your stake. |
| State tax | Depends on where you live and where you placed the bet. |
| Losses | From 2026, deductible losses are limited to 90% of losses, up to your winnings, and only if you itemize. |
Source: IRS Instructions for Forms W-2G and 5754 (Rev. January 2026). General information, not tax advice.
4. You owe tax even if you don't withdraw
Leaving it in the account doesn't delay the tax.
The win counts as income in the year the bet settles, even if the money stays in your FanDuel balance. A $100,000 win can push you into a higher tax bracket, so the 24% withheld may not cover everything. You may owe more, by April or through estimated payments.
More detail is in our sports betting taxes guide.
What to do right after a big win
A simple checklist.
- Screenshot the settled bet and download your FanDuel win/loss statement.
- Set aside money for federal and state tax before spending anything.
- Talk to a tax professional, especially about estimated payments.
- Withdraw to a verified bank account and keep the records.
- Keep sizing future bets from a set bankroll, using the Bankroll Management Calculator.
Keep it in perspective
One big win isn't a strategy.
Long-shot parlays that pay six figures hit rarely, and the sportsbook's margin grows with every leg. Protect the win instead of chasing the next one. Only bet what you can afford to lose. If gambling stops being fun, call or text 1-800-GAMBLER.
Bet with data, not hunches
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