As sports betting winnings are considered income, you must report your payouts because they may be subject to federal and state taxes.
The responsibility of reporting betting income lies with the taxpayer - only winnings of $600 or more will make a sports betting provider send you a 1099-MIS form.
According to the IRS: “Gambling winnings are fully taxable, and you must report the income on your tax return...Gambling income includes but isn’t limited to winnings from lotteries, raffles, horse races, and casinos.”