You can’t deduct losses if your losses are more than your winnings.įederal and state governments have made out no matter if you won or lost at your legal sportsbook. So, if you made $1,000 betting on NASCAR and lost $500 on table tennis, you could deduct $500 on an itemized return. While most certified public accountants who provide tax services don’t have to deal with gambling-related returns often, Margolis said about 5% of his clients classify their profession as pro gramblers.īettors can claim losses, but only against winnings. Margolis caters to those in the entertainment industry and has a stable of clients who are pro poker players. “They know most people stink,” Margolis said. And betting companies like DraftKings and FanDuel must report annual winnings that tally more than $600 to the IRS and, typically, your state.īut legendary Southern California accountant Gary Margolis explained why you might not need to worry about the IRS. Individuals are supposed to report any winnings - even for the 50 won for finishing third in your March Madness bracket - no matter the amount as income.

The downside if you hit a lot of parlays in 2022: With more people ditching offshore sportsbooks that operate illegally in the U.S., Americans are now more likely to claim winnings - and losses - in their filings. On the plus side: More than 30 states have taken billions of tax dollars off sports betting. The tax filing deadline for most Americans got pushed back to April 18, a product of the 15th falling on a Saturday and Emancipation Day and Patriots’ Day is observed on Monday.Īs legalized sports betting has rolled out to more states since the Supreme Court struck down the Professional and Amateur Sports Protection Act (PASPA) five years ago, Nevada’s status as the only state to place a bet went with it.

Las vegas sports betting taxes