Betting winnings and taxes: W-2G, reporting and losses
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Gambling winnings are taxable income and must be reported even without a Form W-2G. For 2026 the W-2G threshold is $2,000, and sports wins must also be at least 300 times the wager. Losses are deductible only if you itemize, up to your winnings, and capped at 90% from 2026.
Betting winnings taxes work the same way across licensed sportsbooks and casinos: the IRS treats gambling winnings as taxable income, and you must report them whether or not you receive a tax form. This guide covers the basics, not personal tax advice.
How betting winnings taxes work
The IRS says gambling winnings are fully taxable and must be reported on your return, including winnings that do not appear on a Form W-2G. Operators issue Form W-2G when winnings reach the reporting threshold, which is $2,000 for payments made in 2026, and sports wagering wins must also be at least 300 times the wager. The form only reports your winnings, and your final tax depends on your total income.
Withholding and your taxpayer ID
For sports wagering, 24% federal tax is withheld when winnings minus the wager exceed $5,000 and are at least 300 times the wager. If you do not give a correct taxpayer ID, backup withholding of 24% can apply to reportable winnings, which is one reason sportsbooks ask for your SSN. Withholding is a prepayment that is settled on your return, so a withheld amount is not necessarily the tax you owe.
Deducting gambling losses
You can deduct gambling losses only if you itemize, because they are claimed on Schedule A, and the deduction can never exceed the winnings you report. For tax years beginning after December 31, 2025, only 90% of losses count: if you win $10,000 and lose $10,000, you can deduct $9,000, which leaves $1,000 taxable. Bills to restore the full deduction have been introduced in Congress, but none had become law when we last checked.
Records to keep
Download your account statements and win and loss summaries each year, and keep dates, amounts and the type of wager, since the IRS expects an accurate diary or similar record. The IRS guidance on gambling income and losses covers the official rules, and a tax professional can apply them to your return before you file. Last checked October 2026.