With the 2026 FIFA World Cup taking place across the United States, Mexico, and Canada, the tournament is expected to generate an unprecedented level of sports betting activity. Analysts estimate that betting will exceed the US$35 billion staked during the Qatar 2022 World Cup (though not in Qatar itself, where gambling is illegal), driven in part by the expansion to 48 teams and the growing availability of regulated US sports betting.

Importantly, the ability to place sports bets in the US is determined on a state‑by‑state basis. Non‑resident visitors may only place bets in states where sports betting is legally authorised, and all betting must be done through licensed operators within those states.

This insight explores what UK visitors need to know about US withholding tax on sports betting winnings earned while in the US.

As UK football fans head to the United States for the 2026 FIFA World Cup, many will place bets while they are there. However, gambling winnings earned inside the US are treated as US-sourced income, meaning 30% tax withholding may apply unless the bettor provides the appropriate IRS documentation. As most visitors will not already hold a US Individual Taxpayer Identification Number (ITIN), withholding will typically occur, although it may be reclaimed later.

This insight sets out:

• Why 30% withholding applies to foreign bettors

• How UK residents can claim tax relief under the US–UK treaty

• What records visitors must keep to obtain a refund

• Whether UK betting apps can be used inside the US

US withholding tax rules for foreign visitors

Gambling winnings paid by a US sportsbook to a foreign individual are treated as US-source fixed or determinable income. As a result, they are subject to 30% withholding tax, unless a valid Form W 8BEN with an ITIN is provided. The winnings are also reportable on Form 1042-S, which the bettor will receive from the sportsbook.

• Under Article 22 (“Other Income”) of the US–UK tax treaty, US-source gambling winnings received by UK residents are generally exempt from US tax, provided the correct documentation (including Form W-8BEN and an ITIN) is supplied to the US payer at the time of pay-out.

In practice, most UK visitors will not have an ITIN, so withholding will still apply and must be reclaimed after returning home.

Practical considerations for UK fans attending the World Cup

1. Most UK visitors will not have an ITIN, so withholding will occur

Since ITINs can only be obtained through a formal IRS application, visitors will almost always travel without one already in place.

Result: 30% US withholding on winnings is automatic.

2. Keep all evidence of winnings, especially the Form 1042‑S

To reclaim withheld tax, bettors must retain:

• Form 1042‑S (proof of withholding)

• Betting receipts

• Account statements

• Any pay-out confirmations

Without Form 1042‑S, the IRS will not issue a refund.

3. Claiming a refund after returning to the UK

After the World Cup, visitors can recover withheld tax:

1. Buzzacott, together with a Certified Acceptance Agent (CAA) can assist in obtaining an ITIN.

2. We can prepare and file a Form 1040‑NR US tax return.

3. Treaty relief under Article 22 is claimed.

4. A refund request is submitted to the IRS.

IRS processing can take several months, so accurate documentation particularly important.

Can UK visitors use UK betting apps while in the US?

The short answer is no. Most UK betting apps will block betting activity once they detect that the user is physically located within the US, unless the operator also offers a compliant US platform and account setup.

This is because betting access in the US is regulated by location and licencing, rather than by the customer’s nationality or where their betting account was originally opened. US sports betting is geofenced, meaning apps must confirm that users are within a licensed state. Non-US bookmakers are not licensed to accept bets in the US, and therefore must block transactions.

Practical impact

Visitors wishing to place bets while in the US will need to use US-licensed sportsbooks.

All bets made through US operators are treated as US-source income and may therefore be subject to 30% non‑resident withholding, unless Form W‑8BEN and an ITIN are provided.

Some non-US bookmakers have US subsidiaries, but these require a separate US account and full compliance with US tax and geolocation rules.

Most UK visitors will not have an ITIN in place when betting in the US, meaning 30% withholding on gambling winnings will generally apply. Visitors should keep Form 1042‑S and all betting records so that, once back in the UK, we can assist in obtaining an ITIN through a Certified Acceptance Agent and file a Form 1040‑NR to claim any available refund under the US–UK treaty.

How we can help

Our US tax specialists working alongside Certified Acceptance Agent partners can assist with:

• Obtaining an ITIN quickly and correctly

• Preparing and filing Form 1040‑NR

• Claiming treaty relief

• Securing the refund of the 30% withheld tax

If you or your clients are planning to attend the 2026 FIFA World Cup and may place bets while in the US, please get in touch to discuss planning ahead, understanding the rules, or reclaiming any US withholding tax on winnings.