NEW YORK (PIX11) – There are winners and losers in mobile sports gambling, casinos and the lottery.
Those who participate may receive a W-2G form from their app of choice to file winnings with the IRS. Businesses that deal with legal gambling are required to report payouts when they meet a specific threshold, according to the IRS.
- Bingo and slot machine winnings of $1,200
- Keno winnings of $1,500
- Poker tournament winnings of $5,000
- Gambling winnings at least $600 and payouts at least 300 times the wagered amount
But did you know you can also claim the money you lost gambling on your taxes?
There’s one catch.
You can deduct your losses on gambling to include lotteries, raffles, horse racing, casino games, poker games and sports betting, according to TurboTax.
According to NerdWallet, the first hurdle most people will face is that you cannot write off more than the amount you’ve won. Another issue some might face is you cannot claim your losses unless you itemize your deductions, which many people skip by choosing the standard deduction.
Record keeping is another issue many gamblers face, according to NerdWallet. While gambling businesses will send you a report of your winnings, most sportsbooks and casinos will not provide information on how much you lost. So you would have to keep your own records.
"To deduct your losses, you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses," reads a statement on the IRS website.
The cut-off for bettors is Jan 31. So those who gambled on this year’s Super Bowl will not have to report any winnings or losses until next tax season.
Jonathan Rizk is a digital journalist who has covered local news in the New York City and Washington D.C. areas. He has been with PIX11 since August 2022. See more of his work here and follow him on Twitter.
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