Taxpayers Confused by Sports Betting Taxes

“Hi everyone. I live in Las Vegas and placed a bet through Boyd Sports. My potential payout is $2,500, and the maximum odds are +1270. I’m not a US citizen, but I live in Las Vegas and have a foreign passport. If my 3-leg parlay wins, will Boyd Sports pay me the full $2,500, or will they withhold taxes at the sportsbook when I cash the ticket? My bet does not come anywhere close to 300 times the wager. Does anyone have personal experience cashing a similar sports betting ticket in Nevada as a for”

“Oops! I know that, and just phrased it backwards. [re: Reporting taxes from fanduel sportsbook]”

“The gross amount of the bet/payout doesnt affect your AGI, only the net winnings [re: Reporting taxes from fanduel sportsbook]”

“Yeah but that affects how much I can deduct in losses because we can only deduct 90% of losses this year. Also, wouldnt adding all the gross bets increase my agi and tax bracket? In that case id much rather report 100 in winnings than 200. This my first time reporting them so I want to make sure. These might just be dumb questions. [re: Reporting taxes from fanduel sportsbook]”

“There's no over reporting. In your scenario your gross bets is $100 and your gross payouts is $200. So you get $100 in net gain like i described. [re: Reporting taxes from fanduel sportsbook]”

“Gross bets minus gross payouts/wins = net loss or net gain [re: Reporting taxes from fanduel sportsbook]”

“Gambling help with new 90% deduction law How do you guys report taxes for fanduel sportsbook. With draftkings, they give me an exported bet history to calculate wins losses. Fanatics sends me a net wins pdf. Fanduel only provides the gross wins and gross bets. These numbers include the wagers however and are double counting. So payouts include wagers and bets include the ones that are won. When trying to get an excel sheet similar to draftkings, fanduel said they cant. How do you guys report for”

“I won the max 5,000 times spin on $10 spin on Crown Coins social casino. Resulting in winning $50k… I live in NC. Does anyone know the best way to withdrawal? Also how do I handle this with taxes? I want to handle this all the right way and pay my portion of taxes owed. submitted by /u/Choice-Dependent-410 [link] [comments]”

“Deposits and withdrawals don't matter. A win is a taxable event at the point that the money is yours, whether you choose to remove it from the platform or not. Bets, wins, and losses. That's it. That's all you need. You don't net yearly wins against yearly losses and report that figure for the year. you can only net wins and losses from the same session. You should be maintaining a contemporaneous gambling log/diary that breaks down your activity by sessions. For example, if you”

“I’ve used social casinos online “sweepstakes”. From my understanding, you can deduct your losses upto your winnings, but it has to be itemized. My problem is, I haven’t been keeping a record of my “sessions”. I have a lot of money coming in and out of my bank account and that is the only documentation I have of these transactions. How would I organize this for tax purposes? Would I do each day as a “session”? Does it need to be separated even further with each individual platform? I want to make”

“I bought $10,775 in SC What is SC? I redeemed $6400 Is that your gross winnings or did you already subtract your wagers? If I was making a spreadsheet to track everything, this is stuff I'd list: Date wager placed Date wager resolved (if it's all the same day, you can just list the one date) Website name Game (blackjack, CHI vs PHI, etc) Bet amount Win amount Net winnings If you were playing as a session of gambling, I'd just record the session. So if you played poker for 2 hours, th”

“I’m trying to get all my purchases and redemptions on a spreadsheet. I’m not quite sure if there is a certain way to calculate taxes on gambling winnings. I bought $10,775 in SC and I redeemed $6400 this year. So I lost $4,375. How much would I have to pay in taxes about? And is this the right way to go about it? submitted by /u/DrPepperGripper [link] [comments]”

“OP, what do you mean you couldn’t separate out sports wagers? If I use daily session method with each online book each day it's closer to 66k and 63k BUT I can't separate out sports wagers which is like 1% of this total and I can't go by each slot game cus I jumped around so much. This was all online.”

“Ok thanks. I think what I made should have it covered then. Appreciate the answers”

“Specifically lottery related losses? submitted by /u/Jeremichi22 [link] [comments]”

“Not getting a tax form doesn’t automatically mean the winnings are tax-free. Gambling winnings generally still need to be reported, and losses may be deductible if you meet the IRS requirements and keep proper records. With $40k involved, I’d definitely have a CPA check the exact situation. I​​​f​​​ ​​​y​​​o​​​u​​​’​​​r​​​e​​​ ​​​c​​​o​​​m​​​p​​​a​​​r​​​i​​​n​​​g​​​ ​​​s​​​w​​​e​​​e​​​p​​​s​​​t​​​a​​​k​​​e​​​s​​​ ​​​p​​​l​​​a​​​t​​​f​​​o​​​r​​​m​​​s​​​ ​​​t​​​o​​​o​​​,​​​ platforms too, ​​​Y​​​a”

“Does gambling winnings include the cost of the bet/contract? For example, I bought an event contract for $200 and sold it for $600. On the tax return, do I list $400 as my winnings or $600? I am a single 27 y/o filing in Hawaii. submitted by /u/Otherwise-West-3649 [link] [comments]”

Did you get a 1099?

“Hi everyone, So here in New York, offshore casinos aren’t legal. My question here is if I made money off online poker, would I have to report the winnings to the IRS and if it’s considered illegal to do gamble on offshore casinos here, could they arrest me after I file my taxes and say I won it from an offshore casino? I’m just confused here with this whole thing. It’d be a Crypto casino offfshore casino too. Thanks guys submitted by /u/PenguinsAreCold69 [link] [comments]”

“I filed an extension this year, so that I can wrap my head around my taxes. I think I have everything figured out but have 2 questions or concerns. 1st- reporting casino winnings that dont have a W2G form issued. When reporting wins does this create a red flag if they are substantial with no W2G? I have losses that offset some of the wins, and already paid estimated tax, so it isnt the taxes I am concerned with. I have the crypto sales taken care of, so no issues there, from receiving the winnin”

“That’s not how it works. W2s are winnings only and have nothing to do with deposits and withdraws. Regardless. Take the total sum of your w2s and subtract 90% of the 80k loss. It’s the second scenario I laid out where I estimated you made 128k.”

“It really depends on the treatment of winnings/losses, how they only got that 200k in winnings (my assumption is that they accounted for same session wins and losses, but I could be wrong). If winnings are 200k and losses 280k, the deduction would equal the winnings and the tax hit might only be a few thousand worst case (not that that's a small amount, but definitely better than paying taxes on a hundred thousand+ in income). But definitely get someone more knowledgeable to help out on this”

“Casino wins: $1,738,683 Total plays: $1,816,569 Deposits: $270,844 Withdrawals: $209,708 Win/loss: (80,000) This is what my win/loss statement says.”

“However the situation may end up, report it appropriately and then get on a payment plan asap when you file if you can't pay any balance due. Interest and penalties could potentially apply (the likely would), but the penalties are much worse if you don't report it.”

“I appreciate your insight, looks like I’m screwed and I’m going to owe a lot of freaking money! 😞”

“As someone else stated, deposits and withdrawals have no affect on the tax situation. As for why your statement shows 1.7 million in winnings but the w-2G only shows 200k, I'm not knowledgeable enough about gambling to know why this happened. My assumption would be due to same session wins/losses, but I'm sure someone else here with more experience could offer a much better answer than I could”

“But I only have w2g on the 200,000 something? So wouldn’t it go by my deposits and withdrawals from the winnings?”

You lost 80k no

Thanks for the correction!

“So this wasn't an actual legal casino, and no losses are deductible. The $40k is income for you. ETA: you were not actually making wagers with money if it was one of these "Sweepstakes" games. You were buying coins to use to play games for entertainment and were given coins (sweeps coins) to play for cash. That is how these sites get around the laws for being a casino. ETA2: doesn't matter if you withdraw the $40k or not, all of it is still income.”

“You report your total winnings as income (without deducting losses). You can deduct 90% of your gambling losses (but not more than your winnings) as an itemized deduction (on schedule A). You would only itemize deductions if your total itemized deductions are more than the standard deduction.”

“Yes, if you’re sent a W2-G , pay it so there’s no discrepancies . I doubt people are Reporting 200k worth of online gambling . Playing through thousands a day on a game like roulette or something, people aren’t reporting that stuff. No chance”

“All wins are taxable income, at your regular marginal tax bracket rate. You don't subtract losses. The bet itself is not taxable income when it's returned to you in a win. So if you bet $100, you win $5, and they give you $105 back (your bet plus winnings), that's $5 in winnings. For losses, you CAN deduct losses eventually (90% of them starting in 2026) BUT in order to do that, you most give up the standard deduction, and itemize instead. If you only have about $1000 in losses, that”

“So I’m using DraftKings how would I deduct my losses and gains for taxes ? I’ve made 1,960 in gains but can’t figure out how much I’ve “lost” since I’ve only ever really put down a small deposit and have won and loss in small gambles constantly.”

“No. Go and read the actual regs that define the session method and its applicability and you'll see it is based on the bettor's actions and circumstances as well as the nature of the game play. You're just making up a definition based on your casual interpretation of what you think a session should be. There is nothing in any IRS pub or Reg that supports OP's intended use of the method.”

“Given it's a single event being bet on, for example, isn't this automatically the session method? Because no realization of profit or loss on different legs could occur at a different time than the other?”

“You should probably cover the tax on the gambling winnings he'd owe if this was his account, so add around $3,500-$5,000 depending on his bracket.”

“Did you loss it through his account? Because if not, let him keep the 6500, because all the IRS will see is that he won 26,000. Also - I’m going to give you a story of something that happened to me. I worked in landscaping and was terrible at it. I once spent 3 days fixing a ladies edging because i kept messing it up and had no idea what i was doing. At the end she gave me the best advice - “you spent 3 extra days here doing what most people can do in 1/2 a day. Landscaping is not your calling,”

“have him file all his stuff first, see how much he will owe. then add the gambling and see how much he’ll owe. subtract the difference.”

“And I already gave him 6500 to hold when I won for taxes and now im broke so I wanna add the losses to it so I can get some bread back from him”

“Ok so I hit on hardrock bet July 2026 florida but on my brothers account I need to know how much to give him so when taxes comes around he will have it so I hit for $26,189.22that was the win I but also I lost about $3,437.31 so what should I give him he makes about 25,000 to 30,000 maybe even 35,000 how much should I give him for taxes ( also I broke him off with 2,000 for letting me use his account off the rip for him to have since I hit with his account ) submitted by /u/Jealous-B”

“To my understanding. Losses are a deduction up until 90% of what was lost. Gains are taxed at every win. Meaning if you win keep track using the tax work recieved from Kalshi. File that with a tax professional if you are still at a loss mentally. Making money on gambling is volatile at best. I am still learning myself. From what I have read kalshi isn't worth using unless you can ensure high profits in order to keep up on tax amount. Look into the 60/40 rule on what you can expect tax equati”

“Thing is the standard deduction greatly benefits most people. You're not really being penalized for gambling losses, you just lose the benefit because you're now claiming a specific loss. You should understand that going in. It's not a punishment, it's just how the standard deduction works. Now, being able to claim only 90% of losses, that is a punishment. Mostly because gambling is degeneracy. Should really be like 10% imo.”

“It works the same way it would work if it happened in the U.S. and you got paid in dollars, except you probably have some additional international information return filing requirements that you need to comply with to avoid getting hit with huge penalties. Talk to a CPA.”

“What do you mean: "There's no 90% haircut"? The OBBBA restricted the itemized deduction for gambling losses to the lower of 90% of the losses or the amount of winnings. https://community.freetaxusa.com/kb/articles/264-one-big-beautiful-bill-act-s-effect-on-gambling-losses (easy to read) or IRS bulletin %20amended%20section%20165(d)%20to%20limit%20this%20deduction%20to%2090%20percent%20of%20the%20amount%20of%20wagering%20losses%20during%20a%20taxable%20year%20and%20only%20to%20the%2”

“wait, what if you dont itemize or lose enough to itemize? winnings work against you but losses wont help you?”

“W-2g or not you have gambling income even when you bet your buddy $20 on a football game. You won't find a tax professional suggesting anything other than reporting all of your taxable income.”

“Started with $1,000 and ran it up to $50k, then lost $15k. How would taxes work in this situation? It’s an offshore sportsbook, and I received the withdrawals in Bitcoin. submitted by /u/Unable-Astronaut-823 [link] [comments]”

“From Gemini — Certified public accountants who specialize in gambling help recreational and professional bettors navigate complex tax rules, such as W-2G reporting, session tracking, and loss deductions. [ 1 , 2 ] Notable CPA Firms Specializing in Gambling DFS Accounting Services: Powered by Jacobs & Newmark, P.C., they specialize exclusively in daily fantasy sports, sports betting, and gambling tax strategy nationwide. [ 1 ] Zachary Zimbile, CPA: A remote and Las Vegas-based practice provid”

“Be careful with this as there is a 90% limit on the deductible losses that carries through to state taxes as well.”

“I agree here the best course of action would be to contact a CPA or a certified attorney that is familiar with these types of cases, as far as i know Kaishi is not considered a sportsbook so id think you would need to report it separately but best to consult with a CPA, in my honest opinion.”

You could gamble and find out....

😂

“I am a profitable arbitrage bettor taking advantage of good odds on sportsbooks then betting the other side on various prediction markets. Meaning that I bet both sides of an outcome and then recognize the net winnings or net losses as a single wager. Would having some of those wins be on a Sportsbook and most winnings on Kalshi make them undeductable as gambling winnings? Gambling winnings are subject to harsher tax than investment income, so I would hope if I went to court I could successful a”

“You may be able to lower your NJ gambling income with any gambling losses whatever they may be”

Gambling losses aren't deductible 100% anymore

“Not only is this correct, this would yield better tax treatment as well cause gambling winnings now have a floor to offset winnings”

“At the moment, the prevailing wisdom is that this isn't considered gambling winnings. These are 1265 contracts and treated differently. Edit: 1265 contracts is more specific than options.”

“I messed up this year (2026) by getting addicted to sports betting, and I'm trying my best to figure out how much I will have to pay in taxes when the time comes. I know I have to itemize because my numbers surpass the standard deduction for filing single in NY. I have $81452 in net losses and $81616 in net winnings for this year, so I won some and kept throwing it back in. With the new rules, can somebody walk me through how to calculate my taxes after itemizing? Is that the smart thing to”