Do I Have to Report Gambling Winnings on My Taxes?

Yes — gambling winnings are fully taxable federal income and must be reported on your tax return regardless of the amount or whether the casino or sportsbook sends you a W-2G form. Casinos, sportsbooks, and lottery organizations are required to issue a W-2G when your winnings exceed certain thresholds (for example, $1,200 or more from a slot machine, or $600 from sports betting), but you're legally required to report all winnings — even small amounts that don't trigger a W-2G. The good news is that you can deduct gambling losses, but only if you itemize your deductions, and only up to the amount of your gambling winnings — you can't deduct losses in excess of your winnings to create a net gambling loss. Professional gamblers who gamble as their primary trade or business can report winnings and losses on Schedule C, which can be more flexible. State tax treatment of gambling winnings varies, and some states don't allow the deduction of gambling losses at all.