What counts as taxable gambling income
Taxable gambling income includes winnings from:
- Casinos
- Lotteries
- Raffles
- Horse racing
- Sports betting
- Poker tournaments
- Bingo
This includes the fair market value of noncash prizes like a car or a trip, not just cash winnings.
When you’ll get a Form W-2G
| Wager type | 2025 threshold | 2026 threshold |
|---|---|---|
| Slots or bingo | $1,200 or more | $2,000 or more |
| Keno | $1,500 or more (net of wager) | $2,000 or more (net of wager) |
| Poker tournaments | $5,000 or more (net of buy-in) | $5,000 or more (net of buy-in), unchanged |
| Lotteries and other wagers | $600 or more, if the payout is 300 times the wager | $2,000 or more, if the payout is 300 times the wager |
Source: Internal Revenue Service
These thresholds rose sharply for 2026: the $1,200 slot and bingo figure, unchanged since 1977, jumped to $2,000, and the same $2,000 floor now applies to keno and other qualifying wagers. This is a reporting change only, not a tax change; you still owe tax on winnings below the threshold even without a form.
You can’t net your wins and losses
Each win is reported in full, without subtracting the amount you wagered to get there. If you bet $50 and win $250, you report $250, not $200. Losses are handled separately from winnings.
Deducting gambling losses
You can only deduct gambling losses if you itemize your deductions on Schedule A, and you can only claim up to the amount of your winnings for the year.
Starting with the 2026 tax year, the One Big Beautiful Bill caps deductible gambling losses at 90% of your total losses, even if your losses equal or exceed your winnings. That means a gambler who wins $18,000 and loses $18,000 in the same year, breaking even in reality, can only deduct $16,200, leaving $1,800 of taxable income.
Keep documentation of both wins and losses, since the cap applies to your actual loss total either way.
Reporting winnings on your return
Total winnings go on Schedule 1 as other income, which flows to Form 1040. Any federal tax already withheld, shown on your W-2G, counts as a payment credit against your total tax bill.
