8 Tax Tips for Gambling Winnings and Losses

If you pick the right horse at the track or win some money at a casino, don't forget that the IRS wants a cut of your winnings.

picture of person playing blackjack
(Image credit: Getty Images)

The American gaming industry is booming. New casinos and sports betting parlors are popping up across the country, Las Vegas is thriving, lotteries are popular and online gambling is big. There are certainly plenty of opportunities to plunk down a bet if you enjoy gambling. And, if that's your thing, we hope you come home a winner.

However, if you are lucky enough to win some cash from a smart bet, don't forget that Uncle Sam wants his cut, too. So, before you run out and spend your jackpot, here are 8 things to remember about taxes on gambling winnings.

Rocky Mengle
Senior Tax Editor, Kiplinger.com

Rocky is a Senior Tax Editor for Kiplinger with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, he worked for Wolters Kluwer Tax & Accounting and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky has a law degree from the University of Connecticut and a B.A. in History from Salisbury University.