Gambling & Sports Betting Tax Calculator

Yes. All gambling and sports-betting winnings are ordinary taxable income under IRC §61, reportable on Schedule 1 (Form 1040), regardless of the amount and regardless of whether you receive a Form W-2G. This includes casino games, sports betting apps (DraftKings, FanDuel, etc.), daily fantasy sports, poker, lottery, raffles, and horse racing. There is no minimum threshold below which winnings are tax-free — the W-2G thresholds only control when the PAYER must report to the IRS, not when YOU owe tax.

A payer issues Form W-2G when winnings meet the applicable threshold: $600 or more (and at least 300× the wager) for most sportsbook/wagering wins, $1,200+ for slots or bingo, $1,500+ (net of wager) for keno, or more than $5,000 (net of buy-in) for poker tournaments. Mandatory 24% federal withholding kicks in separately when winnings minus the wager exceed $5,000 AND the payout is at least 300× the wager (also applies to noncash prizes at fair market value). Below the withholding trigger, no tax is withheld even though the win is still fully taxable — you owe it when you file.

The One Big Beautiful Bill Act (OBBBA), §70114, amends IRC §165(d) so that for tax years beginning after December 31, 2025 (i.e., starting with tax year 2026), only 90% of gambling losses are deductible on Schedule A — down from 100% for 2025 and all prior years. The deduction is still capped at total winnings for the year. This means a break-even gambler (winnings = losses) who itemizes can now owe tax on "phantom income": for example, someone who wins and loses $100,000 in 2026 can deduct only $90,000 (90%), leaving $10,000 taxed even though they made no actual profit.

No. Gambling losses are deductible ONLY as an itemized deduction on Schedule A ("Other Itemized Deductions"), never above-the-line and never against the standard deduction. If your total itemized deductions (SALT, mortgage interest, charitable gifts, gambling losses, etc.) don't exceed your standard deduction, itemizing doesn't help — and neither do your gambling losses. Casual gamblers who take the standard deduction pay full tax on 100% of their winnings with no loss offset at all, in any year.

IRS Pub 529 requires a contemporaneous diary or similar record showing the date and type of wager, the name and address of the establishment, the names of other people present, and amounts won and lost — plus supporting documents like W-2Gs, wagering tickets, canceled checks, credit records, bank withdrawals, and statements from the gambling establishment or betting app. Session-by-session tracking (netting wins and losses within a single gambling session) is generally accepted practice for slots, though the IRS has not issued definitive per-session guidance covering every game type.

Most states with a broad-based income tax also tax gambling winnings as ordinary income at your state marginal rate — this calculator applies your state's marginal rate to the taxable portion of your winnings. States with no individual income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) impose no state tax on winnings. A few states have their own quirks on lottery/gambling-specific treatment — check your state department of revenue before relying solely on this estimate.

Professional gamblers report winnings and (ordinary and necessary) business expenses on Schedule C rather than Schedule A, and pay self-employment tax on net profit. However, OBBBA §70114 made permanent the TCJA-era rule that ALL deductions incurred in carrying on a gambling trade or business — not just wagering losses — count as "losses from wagering transactions" subject to the same 90% cap (2026+), and the combined deduction still can't exceed gambling winnings. This overturned the pre-2018 Mayo decision that had let professional gamblers deduct ordinary business-expense losses in excess of wagering losses.