What is taxable
Federal law treats all gambling winnings as income, from every book and DFS app. You report them whether or not you get a tax form.
Losses and the 90% rule
You can deduct losses only if you itemize deductions, and never more than your winnings. Starting with the 2026 tax year, only 90% of your losses count. If you win $10,000 and lose $10,000, you can deduct $9,000, so $1,000 can be taxed even though you broke even.
W-2G forms
For 2026 a sportsbook sends a W-2G when a single win is $2,000 or more at odds of 300 to 1 or longer. Most bets never trigger one. The income is still taxable.
State taxes
Most states tax winnings too, and the rules on losses differ by state.
Keep records
- Every bet: date, book, stake, odds and result. My bets exports all of this.
- Each book's yearly win and loss statement.
This is general information, not tax advice. Talk to a tax professional about your situation.