Players who will take the field Super Bowl LX Sunday will face a significant tax bill due to the location of the game which triggers what is known as a “gaming tax”.

Super Bowl LX will be played in Santa Clara, California, and the Golden State is one of several states that have implemented the so-called gaming tax on professional athletes, which assesses players’ taxes based on the number of days they spend playing or practicing in a given jurisdiction, including those outside their home state.

The NFL’s collective bargaining agreement sets out the bonuses paid to players on both the winning and losing sides of the Super Bowl: Players on the winning team will each receive a payday of $178,000, while players on the losing team will receive $103,000.

Jeffrey Degner, an economics researcher at the American Institute for Economic Research, told FOX Business that while those bonuses are “nothing to sneeze at,” the amount players will take home after taxes like the gaming tax and other state and federal obligations is considerably less.

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Super Bowl LX will air on February 8 from Levi’s Stadium in California. (Kirby Lee-Images via Reuters)

“What that means here is that the winning team, their take home pay will be approximately $86,000. If you’re on the losing side, the take home pay would be approximately $49,800,” Degner said.

Game taxes apply NFL players throughout the season in the jurisdictions in which they are in force, so whenever they play or practice in an area where a gaming tax has been implemented, they will be subject to the tax on the income earned on that day.

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Super Bowl LX will be held at Levi’s Stadium in Santa Clara, California, triggering the state’s gaming tax. (Ishika Samant/Getty Images)

Both states and cities can implement gambling taxes, adding layers of complexity to the gambler’s tax burden, although they remain more popular at the state level than municipalities.

Most gaming taxes are implemented using a “day of service” standard, as other frameworks have faced legal challenges and feasibility issues.

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Super Bowl winners take home bigger bonuses than players on the losing team, who still get a big paycheck. (Timothy A. Clary/AFP via Getty Images)

The day of service The format uses the number of days an athlete spends “on duty” playing in a game, practicing, participating in team meetings, travel days and, in the case of the Super Bowl, fulfilling media obligations related to the team.

Total earnings are multiplied by a proportion of days of service spent in a given jurisdiction over the athlete’s total days of service to determine gaming tax liability.

“Days of service include days you’re practicing or, in the case of the Super Bowl, even media day counts as a day of service and if that activity is happening in California, you’re subject to those tax rules,” Degner said.

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“Players have a very complex tax situation where they may have 10 or more different states that they have to file taxes for,” he said. “That’s why a lot of these young players, it’s very important that teams set them up with sharp financial advisors and tax advisors so they don’t lose their jersey, so to speak.”