Taxes on Gambling Winnings and Losses: 8 Tips to Remember

If you pick the right horse at the track or win some money at a casino or through online betting, don't forget gambling taxes.

poker chips with dice on table to represent gambling
(Image credit: Getty Images)

Gambling taxes are common because the American gaming industry is booming. From new casinos to lotteries and online sports betting, there are plenty of opportunities if you enjoy gambling. And data from the Pew Research Center show that you wouldn't be alone. (Nearly 20% of adults say they placed a sports bet during the year). 

However, if you're lucky enough to win from a bet or smart gamble, don't forget that the federal government wants its cut through gambling taxes. So, here are 8 things to know about how gambling winnings are taxed.

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Rocky Mengle

Rocky Mengle was a Senior Tax Editor for Kiplinger from October 2018 to January 2023 with more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, Rocky 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 holds a law degree from the University of Connecticut and a B.A. in History from Salisbury University.