Top Tips: What to Do With Gambling Winnings

When it comes to the question of what to do with gambling winnings, we have you covered. Our article on the topic spans different bankroll strategies to make sure you do not overspend in the first place, as well as what to do when you win back money on your bets.

These ideas can be used no matter what kind of games you are participating in, from sports betting to casino games to slots and lottery. Having a bankroll is a consistently important strategy for gambling enthusiasts and amateurs alike. If in doubt, use our navigation table below to go directly to a topic you are interested in, or to check common questions from readers in our FAQ. You might find exactly the question you had on your mind about online gambling winnings.

• How to Protect Your Online Gambling Winnings
• Using Gambling Winnings Towards Future Games
• Ways to Save and Invest Gambling Winnings

How to Protect Your Online Gambling Winnings

There are several aspects to this topic. We cover all below, starting with how to bet responsibility and create a strategy using a bankroll. We then move to how your earnings might feedback into your future game play. Lastly, we discuss spending and investing with practical tips.

Responsible Gaming

When it comes to figuring out what to do with your casino payouts, you have to make sure you have winnings to collect in the first place! The first thing to ensure is that you are betting with a company or site of repute. This can be tricky when it comes to online gaming.

Always check your US state’s laws when it comes to gaming, check if the site you are using is accredited, and read other user reviews. You can also learn more like how to find casinos with the best payouts by checking our other article topics.

How to Use a Bankroll

Now that you’ve identified a good place to gamble, be it in-person or online, you will want to familiarize yourself with the concept of a bankroll. This is one of the topics that most gaming experts agree on: You must have a set spending limit for yourself, otherwise known as a bankroll, that you stick to when you bet. This is true for all types of betting but especially important for winning at casinos, slots and sports betting where money can be spent quickly.

Using a bankroll is fairly simple. Identify the amount that you can comfortably spend every week or month. Ideally, you will have your bankroll separate from your other money so that you can easily track what you have spent and earnt. Keeping good records on betting spending and earning is another helpful tool to make sure you do not go over your limits.

Another way of thinking about a bankroll is asking yourself how much you are able to lose in a given time period, should none of your bets have any returns. Once your bankroll is set, you also have an idea of how to pace yourself and the bets you make. For example, if you know you can bet $500 total for the month, you probably do not want to use that full amount on the first bet that you make.

Using Gambling Winnings Towards Future Games

Once you have gotten yourself some online gambling winnings, or winnings at a brick-and-mortar location like a casino, what you decide to do with it is the most important next step. Some experts recommend never taking money out of your bankroll and rather adding your earnings back to it. That means your bankroll grows over time, ideally, and you have more money to play with going forward. However, you might want to use that money towards other projects. We have advice on what to do with gambling winnings below.

Ways to Save and Invest Gambling Winnings

If you find yourself coming into a large sum of money, there are different strategies for making that money go as far as it can. A financial expert we spoke with suggested that paying off any outstanding debts is the first thing you should do with earnings, after refilling your emergency savings funds.

Experian estimates that 340 million Americans carry debt of some kind, with the debt of US citizens totalling $16.9 trillion. It is unmistakably common to have some form of debt at this point, from student loans to business loans or credit card debt. If you are in this category, do consider paying off debt as your first step if you come into extra cash. Doing this sooner rather than later helps to prevent more debt in the form of interest from accruing.

Approaches to Saving

If you have paid off debts, filled your emergency tank and still are wondering what to do with gambling winnings, you might consider creating another savings goal. If your bank allows you to create separate savings accounts, this can be a great way to keep track of savings towards whatever you are looking to achieve. Depending on your life circumstances, this might be a new training course you would like to pursue, improvements around the house, a vacation for your family, or something entirely different.

Here are some tips for achieving your savings goals:

• Sign up for a high interest savings account. Most basic savings accounts have relatively low interest rates, which means your money is not growing much. However, some banks specialize in high interest accounts which can help your money increase faster. Research to find which deals are best for you at the moment and start applying for these coveted accounts.
• Once you have signed up for an account that is to your liking, see if it is possible to create sub-accounts for your various savings goals. This can help you to more easily keep track of what you are saving for – and how much. Some budgeting apps can also help with splitting up your finances in a more manageable way.
• Collect images of the things you are saving for (or something that represents them) and look at them often. One savings expert we spoke to recommended looking at these images daily to remind yourself what you are saving towards.
• Automate your savings. Some banks and budgeting apps have built in features to let you designate a set amount to your savings account however often you determine. There are also savings app that specialize in this, or which let you round up purchases to slowly set aside small amounts of savings on purchases every day.

Investing Towards the Future You Want

If you still have more earnings to put towards future planning, good news: There are many things you can invest in to help your money grow and continue to work for you. Rather than leaving it all in a low-interest savings account, consider investing in bonds, property, stocks, ETFs or your own retirement fund. Be aware that some retirement plans are taxed upon withdrawal, but many can be structured to avoid taxation. A financial manager can be of help if you are looking for more bespoke advice.