How to File Taxes on Sports Betting Winnings
Filing taxes on sports betting winnings is required by US law, and doing it correctly requires understanding IRS reporting requirements, the right forms to use, and what records you need to support your return. Whether you're a recreational bettor who had a great year or a more serious bettor with hundreds of wagers, this guide covers the essential steps. Always consult a qualified tax professional for personalized advice.
All Gambling Winnings Are Taxable Income
The IRS is explicit: all gambling winnings — regardless of amount, and regardless of whether you receive a W-2G form — are taxable income. Sports betting winnings from DraftKings, FanDuel, BetMGM, or any sportsbook must be included in your gross income on your federal tax return. This applies even if the sportsbook didn't issue a W-2G, even if the winnings were paid in bonus bets that you converted to cash, and even if you also had net losses on the year.
Where to Report: Form 1040
Sports betting winnings are reported as "Other Income" on Schedule 1 of your Form 1040. If you received W-2G forms from sportsbooks, the amounts on those forms feed into the same line. The total of all gambling winnings from all sources goes on this line. Do not net your winnings against your losses on this line — report gross winnings on Schedule 1, and handle losses separately (see below).
Reporting Losses: Schedule A Itemized Deductions
Gambling losses are deductible, but only if you itemize deductions (Schedule A), and only up to the amount of your reported gambling winnings — you cannot use gambling losses to create a net negative income from gambling. If your total winnings were $5,000 and your total losses were $8,000, you can deduct $5,000 in losses, not $8,000. To take this deduction, you must have itemized — meaning your itemized deductions exceed your standard deduction ($14,600 for single filers and $29,200 for married filing jointly in 2024, likely higher in 2026).
Professional Bettor Classification
Bettors who engage in sports betting as a trade or business — with regularity, continuity, and profit motive — may qualify as professional gamblers. Professional status allows net losses to be deductible on Schedule C and the deduction of business expenses. However, professional status comes with self-employment tax obligations on winnings and requires substantiation of professional-level activity. This is a complex determination best made with a CPA.
Records You Need
Good records are essential: a log of every bet placed (date, sportsbook, amount wagered, odds, and outcome), all W-2G forms received, bank statements showing deposits and withdrawals from sportsbooks, and any emails or transaction histories from sportsbook accounts.
Oddible makes tax recordkeeping straightforward. Export your full bet history — including total wagered, total won, and net profit/loss by time period — directly from your Oddible dashboard. It's the documentation foundation your accountant needs to file accurately.
