Gambling taxes for US players

Are gambling winnings taxable in the US?

Yes. Gambling winnings count as federal taxable income. That covers casino games, sports bets, lotteries, pools and sweepstakes prizes, and it doesn’t depend on whether the payer sends you a form. A W-2G is the payer’s report to the IRS, not a test of whether your win is taxable.

This matters most for US players at offshore casinos. Those casinos sit outside the US system, and none of our partners publishes a tax-reporting policy in its terms. Your duty to report winnings is the same either way. Our gambling laws hub covers the legal side, and do offshore casinos report to the IRS looks at that question directly.

This page explains the rules in general terms. It isn’t tax advice. For your own return, check current IRS guidance or ask a tax professional.

Gambling tax reporting thresholds for 2026

Payers file Form W-2G when a win reaches a threshold. For payments made in 2026, the minimum is $2,000, and the IRS says it will be adjusted for inflation each year after 2025. The test differs by game.

The thresholds come from the IRS instructions for Forms W-2G and 5754 (opens in a new tab). Our dedicated W-2G form guide explains who issues the form, what it records and what to do with it, and the W-2G glossary entry gives the short definition.

Gambling tax withholding: when 24% is taken

Some large wins have tax taken out before you’re paid. The IRS calls this regular gambling withholding, and the rate is 24%. It applies when winnings minus the wager are more than $5,000 for these types:

• Sweepstakes, lotteries and wagering pools.
• Parimutuel bets, such as horse racing.
• Sports and other wagering where the win is at least 300 times the bet.

Regular withholding does not apply to bingo, keno or slots, however large the jackpot. A $50,000 slot win gets a W-2G but no automatic 24% deduction, which can leave a big bill at filing time. Separately, backup withholding of 24% applies if you don’t give the payer a correct taxpayer identification number.

Deducting gambling losses: the 90% rule from 2026

Gambling losses have long been deductible only up to the amount of your gambling winnings for the year. The 2025 federal tax law, the One Big Beautiful Bill Act (H.R. 1, section 70114), changes that from the 2026 tax year, as reported by a law firm summary and an IRS proposed rule.

Under the amended Internal Revenue Code § 165(d), the deduction for wagering losses equals 90% of those losses, and it’s still allowed only up to your wagering gains. “Losses” here include other costs of making the bets. It applies to taxable years beginning after December 31, 2025.

An IRS and Treasury proposed rule published on April 17, 2026 (opens in a new tab) restates the 90% limit. Representative Dina Titus offered an amendment to restore the full 100% deduction (opens in a new tab); whether it passed isn’t confirmed. Treat the 90% rule as reported, and check IRS guidance before you file.

We haven’t confirmed on an IRS page whether you must itemize to claim losses, so ask a tax professional. The gambling loss deduction page and can I deduct gambling losses follow this topic as guidance appears.

Gambling tax changes timeline

Gambling taxes in dollars: four examples

These examples apply the 2026 reporting and withholding rules. They show when a form or withholding is triggered, not how much tax you’ll owe, which depends on your whole return.

Losses matter too. Over time the house edge means most players lose more than they win, and from 2026 losses are reported to offset only 90% of their value against winnings. Gambling isn’t a way to make money, and the tax rules make a losing year no lighter.

Taxes on offshore casino and sweepstakes winnings

Winnings from an offshore casino are gambling winnings like any other. Not getting a W-2G doesn’t change that. Offshore sites aren’t licensed by any US state, and our partners don’t publish whether they issue US tax forms, so assume you’ll need your own records.

Withdrawal rules shape the paper trail. Third-party reviews report weekly caps of $2,500 at Royal Ace and Slot Madness, so a large win can arrive over several weeks and tax years. Log each payout on the date it arrives. Our weekly withdrawal limits guide explains how caps work.

Sweepstakes casinos are less clear. The IRS W-2G rules include a sweepstakes category, but dual-currency operators don’t all describe how they report Sweeps Coin redemptions. Keep your redemption history and ask a tax professional. Our sweepstakes casino laws page covers the legal side.

State gambling taxes: how they differ

Federal tax is only part of the picture. Many states tax income, and their treatment of gambling winnings and losses differs. State rules on losses may not match the new federal ones. This page doesn’t list state rates, because they change and we only publish figures we can source.

Ask your state’s revenue department or a tax professional how winnings are taxed where you live, and whether winnings from another state are taxed in both. Our state-by-state hub covers each state’s gambling law, and the gambling taxes guide has more on filing.

Keeping records and filing gambling taxes

Good records support both your winnings and your losses. Without them, a loss deduction is hard to back up. Here is a simple routine:

1. Keep a log of each session: the date, the casino or app, the game, and what you won or lost.
2. Save every W-2G you receive, and note any tax withheld.
3. Download deposit and withdrawal histories from each casino account at least once a year.
4. Keep bank, card and crypto wallet statements that match those transactions.
5. At filing time, report all winnings, including wins with no W-2G.
6. If you claim losses, total them from your records and apply the current IRS rules, including the 90% limit as reported.
7. Keep the records with your tax files in case the IRS asks.

Our guide to keeping gambling records has a log template, and the big win taxes guide covers large single payouts. If a tax bill tempts you to gamble more to cover it, stop and read gambling and money, or call 1-800-MY-RESET (1-800-697-3738).

Royal Ace and Slot Madness: offers via our links

Tax rules don’t change between casinos, so these offers fit this page as much as any partner would. Royal Ace and Slot Madness are offshore casinos with no US state license. That means no state regulator to complain to, no state protection of your balance, and terms written by the casino, so check your state’s law before you sign up. Any winnings are taxable. Offers are for new players, 21+ (18+ where allowed), and terms apply.

Royal Ace Casino: $2,500 Welcome Bonus + 35 Free Spins, via our link (new players, 21+ or 18+ where allowed, terms apply). Third-party reviews disagree on the casino’s standard package; one reports 30x deposit-plus-bonus wagering on slots, 60x on blackjack and video poker, and a max cashout of 10x the deposit. Card deposits reportedly start at $30 and Lightning Bitcoin at $5, and weekly withdrawals are reportedly capped at $2,500. It reportedly refuses Ohio players. Read the Royal Ace review.

Slot Madness Casino: $2,500 Welcome Bonus + 50 Free Spins, via our link (new players, 21+ or 18+ where allowed, terms apply). Third-party reviews report a 275% match with a $30 minimum deposit and 30x deposit-plus-bonus wagering on slots, with no max cashout, but disagree on whether it’s capped at $2,750. Reported caps are $2,500 a week and $5,000 a month. The Michigan Gaming Control Board named Slot Madness in its August 14, 2025 order. Read the Slot Madness review.

The terms shown at sign-up apply. Bonuses are slot-focused, and table games are often excluded or weighted lower. The house edge applies while you wager, so losses are likely over time. We earn a commission from these links.

21+ (18+ where allowed). Every casino game has a built-in house edge, so over time you should expect to lose what you stake. Set a budget before you play and stop when it’s gone: responsible gambling tools and free help. Gambling problem? Call or text 1-800-MY-RESET (1-800-697-3738).