Anna Helhoski

But if you bet $100, then you're going to win $120 if it hits.

And finally, one you may have heard of are parlays.

And those bundle multiple specific bets together in order to get a bigger payout.

But every single one of your picks has to win.

So if you bet on three things happening, but only two hit, you lose.

Taxes on sports betting can be really tricky, and we could probably fill a whole other episode on this, so I'm not going to dwell too much.

But sportsbooks will show the total that you get back, and that's your original bet plus your winnings.

But for taxes, you're only going to be paying on the winnings.

You can also deduct losses, but only up to the amount that you won.

Prediction markets are fascinating to me, and I kind of won't shut up about them, so I'll try and keep it brief.

App-based gambling has been around for a while, but in the last year or so, there's really been a pivot to prediction markets, and that's like

Polymarket and Kalshi.

And those turn your beliefs into tradable assets.

So prediction markets let people make money by betting on real-world outcomes.

You see it with things like elections, economic data, awards, weather, pop culture.

But obviously, sports are huge on these platforms.

Now, here's how they work.

They use tradable contracts that are priced to reflect the crowd's belief about the likelihood of something happening.

So if you're right, you get a payout.

And if you're wrong, it's going to be pretty much worthless.