With the U.S. tax deadline just weeks away, new Ohio bettors might have some questions.
Is gambling income taxable? Are winnings from betting reported to the IRS? Where can I find my win and loss data?
Ohio sports betting has been up and running since Jan. 1. Here’s what to know about filing your taxes for 2023 and future years with sports betting in mind.
Do I have to pay taxes on my Ohio sports betting winnings?
The short answer is yes. Gambling winnings and most other miscellaneous income are taxed, just like your employment income or capital gains. Generally, income of any sort is taxable according to federal tax laws.
If you won money gambling in 2022, you’re responsible for reporting that income to the IRS and on your state income tax return. The IRS website spells it out:
“You must report all gambling winnings on Form 1040 or Form 1040-SR (use Schedule 1 (Form 1040)), including winnings that aren’t reported on a Form W-2G. When you have gambling winnings, you may be required to pay an estimated tax on that additional income.”
Common gambling types to be aware of when reporting income to the IRS include:
- Casino games and slot machines
- Sports betting
- Poker tournaments
- Lotteries, sweepstakes and raffles
- Betting pools
- Horse or dog races
Taxes on Ohio sports betting income won’t be due until next year, since sportsbooks didn’t launch in the state until January 2023. However, it might be helpful to keep track of your winnings and losses throughout the year, so you’ll be prepared to file when the time comes.
Will my winnings be reported to the IRS?
Casinos, sportsbook apps and other legal gambling operators are required to report an individual’s winnings to the IRS if they meet certain requirements. The winnings are reported on a form W2-G, which is furnished to the bettor and to the IRS.
Operators are required to provide the tax form if a betting win meets the following conditions:
- $600 or more or at least 300 times the amount of the sports wager
- $1,200 or more from bingo or slot machine
- $1,500 or more from keno
- $5,000 or more from poker
If you received a tax form this year, you may have already paid the federal portion of the tax. When issuing a W2-G, a casino will usually withhold the 24% federal tax. The withholding will be reflected on the form.
Gamblers will have to provide the information from the W2-G on their tax return, and might still owe taxes to their state.
Do I need to request a tax form from Ohio sportsbooks?
There’s no need to request the tax form from Ohio sportsbooks. The operator should automatically provide the form.
Even if you do not receive a W-2G, you are required to report all gambling winnings as “other income” on your Form 1040.
Check your sportsbook apps and watch your email in January for tax forms you’ll need.
Ohio sports bettors might not be able to deduct gambling losses
Not everyone will be able to deduct their gambling losses from their income. According to the IRS website, deducting gambling losses can only be done if you itemize your deductions and kept records of your winnings and losses throughout the year.
Furthermore, deductions for gambling losses cannot exceed the amount of gambling income reported on your 1040.
How to find your betting history
It might be a good idea to keep track of your sports betting winnings and losses for 2023. Even if you only bet on football, don’t forget that there are plenty of games later this year. The regular season starts up again in September. If you’re lucky, you might end up with winnings above the reporting threshold.
If you use Ohio sportsbook apps and want to start keeping records, it’s not too late to get started. Many of the apps have transaction records available right in the app, or via their website. They don’t necessarily keep a year’s worth of data, though, so some work might be required on your part.
Some apps make your information more readily available than others. The following apps make it easy to find your data.
- DraftKings provides a year of transaction history, and you can view it by month.
- FanDuel lists your lifetime winnings right in the app, and a transaction history by month.
- BetMGM provides a PDF Win/Loss Statement for each year
- Barstool shows total deposits, withdrawals, net gains and more on the desktop version of the site.