Gambling in the USA

What You Need to Know About Gambling and Your 2021 Taxes

Published

3 years ago

April 7, 2022

What You Need to Know About Gambling and Your 2021 Taxes

The deadline for filing 2021 federal tax returns looms on April 18 this year and for gamblers, it’s an occasion to be reminded of how the tax code addresses their gaming activity. Generally speaking, that’s not too kindly.

The bottom line is simple and stern. As a rule, all income from gambling — including real money online casino play — must be reported eventually on Line 8 of the familiar Form 1040 (along with inclusion on Schedule 1).

To some, it may come as a surprise that gambling income is reported as a gross figure and not a net result. That stands in contrast to, say, capital gains or losses realized in stock transactions, which are reported on Line 7 of the Form 1040 (usually, along with a Schedule D).

In plain English and by example what that means is this: If a taxpayer wins $500 playing the slots in a casino on Monday and then loses $800 playing the slots on Tuesday, the taxpayer is required to report the $500 win on his Form 1040 on Line 8. The $800 loss would be accounted for on Schedule A (Itemized Deductions) — but there are caveats.

The first may be familiar to taxpayers who gamble. Reported gambling losses cannot exceed gambling wins so in the above example, the taxpayer would have an allowable deduction of just $500 for net zero result (the gamble eats the excess $300 loss). But then there’s another issue.

The taxpayer gets to account for gambling losses only if he/she itemizes deductions on Schedule A. And as a result of the 2017 tax revision, the allowance for the standard deduction was raised to a point where it doesn’t make financial sense for the vast majority of taxpayers to itemize their deductions.

What that means for many taxpayers who gamble relatively modestly is that they have no opportunity to deduct any gambling losses. So, the gaming “win” stands alone as income even if the aggregate gambling activity was a net loss.

As an aside, the standard deduction for married couples filing a joint return for tax year 2021 is $25,100. For single taxpayers and married individuals filing separately, the standard deduction is $12,550. For heads of households, the standard deduction is $18,800.

The impacts of gross gambling income on line 8 may be subtle but can be significant. For instance, that amount gets carried down to Line 11, adjusted gross income, which can affect a range of tax circumstances, such as how much of the taxpayer’s Social Security benefits are taxable.

Stake - Best Online Casino & Sports Betting Platform

FUNDAMENTAL TAX RULES FOR GAMBLERS

Taxpayers who gamble should remember that all gambling winnings must be reported as income regardless of whether the operator issues documentation, such as a W-2G or a Form 1099.
Unfortunately, gamblers cannot “net” their winnings and losses when reporting gambling income. Gambling income is usually reported on Schedule 1 and then carried over to Form 1040, Line 8.
Gambling losses are accounted for on Schedule A, Itemized Deductions, and taxpayers must itemize to get the benefit of a gambling loss deduction. However, taxpayers have to choose between itemizing deductions or taking the standard deduction.
If gambling losses are taken as a deduction, they cannot exceed the amount of gambling wins.
Win or lose, taxpayers should keep a journal of their gambling activity. They should note where, when, what games were played, and how much was won or lost. Taxpayers should also keep any evidence of wagering activity, losses included.
State taxes may also be due on gambling winnings and rules vary from state to state. Gamblers should familiarize themselves with their state’s tax policies on gambling income.

OTHER THINGS TO KEEP IN MIND

The proliferation of gambling, both bricks-and-mortar and on the internet, has created complications for taxpayers that should be addressed by a tax professional but there are some things taxpayers should keep in mind.

As mentioned earlier, keeping a journal of gambling activity be part of your record-keeping.

Remember, all gambling winnings are reportable even if a gambling operator doesn’t issue paperwork, often a W-2G or a 1099-MISC or a 1099-K.

And speaking of W-2Gs, here are the occasions when the Internal Revenue Service says a W-2G should be issued by the gambling operator:

1. The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine;
2. The winnings (reduced by the wager) are $1,500 or more from a Keno game;
3. The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament;
4. The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:
a. $600 or more, and
b. at least 300 times the amount of the wager; or
5. The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding).

What may irritate taxpayers who gamble is how gambling activity is treated as opposed to something like day-trading stocks. In the latter case, which also involves substantial risk-taking, the stock day-trader gets to net losses against gains without having to choose between itemizing deductions and taking the standard deduction.

UNFAIRNESS TO GAMBLERS

The unfairness to taxpayers who gamble, particularly those who play at modest levels, was noted by the American Gaming Association, the trade group that represents the gambling industry, when the 2017 tax code was being revised.

“Under such a higher standard deduction, small and mid-level slot machine players may not be able to itemize their deductions, even with their gaming losses, and hence may not be able to offset gaming wins reported as income with the full amount of their gaming losses,” the AGA said in a letter to Capitol Hill.

“AGA strongly recommends, as a matter of tax simplification, that gaming players should be permitted to subtract gaming losses from gaming winnings in order to compute their taxable net gaming income for purposes of reporting adjusted gross income, without being required to itemize their deductions.”

Unfortunately for gamblers, that recommendation was not taken by the Congress.

For years, the AGA has been trying to get the threshold for issuing W-2Gs raised from $1,200 to $5,000 without any luck. However, early in March, the Congressional Gaming Caucus advanced an effort to raise the slot tax threshold to $5,000 with bipartisan legislation and also provide a mechanism for future increases based on inflation. The current $1,200 slot tax threshold has not been adjusted for inflation since 1977 and, since then, the instances of $1,200 W-2Gs has skyrocketed.

DON’T FORGET STATE TAXES

In addition to concerning themselves with federal taxes, gamblers need to deal with state income tax obligations. Some states allow deductions for losses, some do not. Some states allow for losses and wins to be netted, most do not.

Michigan, for example, changed its tax laws recently to allow for gambling loss deductions where there are winnings. Mississippi, meanwhile, has its 3% tax where the gaming establishment withholds a 3% “nonrefundable” tax at the time a W-2G-level jackpot is hit regardless of whether the winner is a state resident.

Casino customers from outside the country get separate treatment. In many cases, the United States has tax treaties with other countries that dictate how non-U.S. gamblers are treated from a tax perspective. For instance, in the United Kingdom, gambling winnings are not taxed and the U.S. tax treaty with the UK means that U.S. taxes are not withheld from those gambling customers.

Source

Gambling in the USA

Scientific Games’ iLottery Games Portfolio Expands as Pixiu Gaming Joins SG Content Hub

Published

3 weeks ago

July 21, 2025

Zoltan Tundik

Exciting New Hasbro-Licensed MONOPOLY and BATTLESHIP iLottery Games Coming Via SG Content Hub

Scientific Games welcomed Pixiu Gaming as the newest studio partner to the SG Content Hub. Pixiu Gaming joins the government-regulated lottery industry’s premier iLottery content delivery platform, featuring an expanding, highly curated selection of iLottery games from Scientific Games and partner studios around the globe. The games are available to lotteries in multiple languages and in a variety of play styles for all player segments.

Widely recognized as the leading supplier of Keno games in North American regulated gaming markets, Pixiu Gaming is a boutique developer focused on authentic, engaging and player-centric games. Founded in 2014 and based in London, UK with a remote global team, Pixiu is named after a fierce Chinese mythical creature that attracts and preserves great wealth.

Scientific Games, the world’s largest lottery games company, is collaborating with Pixiu Gaming to bring exciting new MONOPOLY and BATTLESHIP iLottery games to lotteries through its exclusive licensing agreement with Hasbro. Games created by Pixiu Gaming will be available in the SG Content Hub, in addition to games from Scientific Games’ own SG Studios and other premier partner studios worldwide.

Tony Plaskow, Pixiu Gaming Co-Founder, said, “Pixiu Gaming is thrilled to join the SG Content Hub to bring our games to more lotteries. We look forward to working with Scientific Games and Hasbro to create exciting, brand-sensitive MONOPOLY and BATTLESHIP-themed iLottery game experiences. These iconic brands are familiar worldwide, and each provides the perfect mix of strategy and luck. We will weave a true-to-brand digital game experience with fun, simple-to-understand content that entertains players.”

Matt Lynch, President, Digital for Scientific Games, said, “We are very excited to partner with Pixiu Gaming, an up-and-coming studio. Their unique approach to game development and artistic vision brings a differentiated offering to market that will add depth to iLottery portfolios by expanding game play options for existing players while bringing new game experiences to attract new players. Scientific Games is focused on creating an unparalleled range of playstyles and game mechanics for players with the SG Content Hub, and we are proud to soon include play experiences from Pixiu Gaming.”

SG Content Hub offers partner studios select exclusively licensed brands from the company’s portfolio of more than 100 licensed brands, which also includes other Hasbro-licensed games such as CONNECT 4, THE GAME OF LIFE and YAHTZEE. MONOPOLY is perennially the lottery industry’s top performer, with 33 lotteries worldwide offering MONOPOLY-themed games in fiscal year 2025, resulting in more than $2 billion in retail and digital sales during the year.

Scientific Games provides retail and digital games, technology, analytics and services to 150 lotteries in 50 countries worldwide. The company is a digital lottery innovator offering lotteries entertaining game content featuring the most extensive portfolio of licensed brands in the industry, and world-leading digital programs, including CRM, loyalty, promotions, second chance, mobile and web applications.

The MONOPOLY name and logo, the distinctive design of the game board, the four corner squares, the MR. MONOPOLY name and character, as well as each of the distinctive elements of the board and playing pieces are trademarks of Hasbro for its property trading game and game equipment. © 1935, 2025 Hasbro. All Rights Reserved. Licensed by Hasbro.

Gambling in the USA

Caesars Entertainment Bolsters Online Casino Live Dealer Offering with the Launch of Branded Live Dealer Studio in Michigan

Published

3 weeks ago

July 17, 2025

Niji Narayan

Caesars Entertainment Inc. announced the launch of its third branded online casino live dealer studio, available now to players on Caesars Palace Online Casino, Horseshoe Online Casino and Caesars Sportsbook & Casino in Michigan. Developed in partnership with Evolution, the new studio reinforces Caesars’ commitment to delivering world-class, immersive experiences across its online platforms, inspired by the iconic atmosphere of its Caesars Rewards destinations.

The debut of the new studio marks Caesars’ third branded live dealer studio that has opened in 2025 and draws inspiration from table game play at the Las Vegas Strip’s most iconic casino, Caesars Palace. Its opening follows the successful launch of Caesars’ first branded studio with Evolution in Pennsylvania in January. In April, the Company also debuted its first studio inside a Caesars Rewards destination at Tropicana Atlantic City in New Jersey.

“Our third live dealer studio expands our fully customized live dealer experience that is already extremely popular in Pennsylvania and New Jersey into another key jurisdiction where our online casino platforms are live. The studio design takes inspiration from our flagship destination, Caesars Palace, to authentically recreate the atmosphere of Las Vegas for online players. We look forward to our Michigan players enjoying the new experience,” said Matthew Sunderland, Senior Vice President and Chief iGaming Officer at Caesars Digital.

The new live dealer studio in The Great Lakes State is composed of five blackjack tables, including a VIP-exclusive blackjack table, one roulette table, and one baccarat table. The tables are adorned with custom-branded felts featuring iconic Caesars destinations and each marquee online casino platform, including Caesars Palace Online Casino, Caesars Sportsbook & Casino, Horseshoe Online Casino, and, for the first time, Tropicana Online Casino.

Select tables also feature custom felts co-branded through partnerships with professional sports teams. Like Caesars Rewards destinations across North America, the studio caters to VIP players with an exclusive high-limit blackjack table offering an authentic 1-to-1 live experience that could previously only be found in a physical casino.

“As the global leader in online live casino with nearly two decades of experience, Evolution is proud to partner once again with Caesars to launch this bespoke live dealer studio in Michigan. The studio brings the unmistakable character of Caesars’ iconic destinations to the online space, offering players in the state a polished, immersive entertainment experience that mirrors the energy and elegance of the casino floor. It’s another bold step forward in our shared commitment to innovation and quality at scale in the online live casino market,” said Marcus Huber, Chief Commercial Officer of Evolution North America.

Caesars Palace Online Casino, Horseshoe Online Casino and Caesars Sportsbook & Casino are available on iOS, Android, and desktop for those 21 and older in New Jersey, Pennsylvania, Michigan, Ontario, and West Virginia. Each platform offers a dynamic online casino experience with a range of unique Caesars-branded games alongside hundreds of classic land-based casino favorites and core casino game mechanics, including high limit slots, private live dealer tables, linked progressive jackpots, variations of poker and roulette, and more.

Gambling in the USA

Snoqualmie Casino & Hotel Unveils Expanded Non-Smoking Gaming Floor

Published

1 month ago

July 8, 2025

Niji Narayan

Snoqualmie Casino & Hotel has officially opened its newly expanded non-smoking gaming floor, marking a significant milestone in the property’s continued commitment to exceptional guest experiences.

Located adjacent to the hotel lobby, the new, larger non-smoking slot floor will feature nearly 400 of today’s most popular slot machines in a fresh, modern environment designed exclusively for non-smoking guests. This addition enhances the casino’s dedication to providing smoke-free gaming options in a luxury setting. For convenience and ease of access, non-smoking guests can also take advantage of the smoke-free entrance via the hotel’s valet parking.

This new space complements Snoqualmie Casino & Hotel’s existing fully enclosed, non-smoking slot area near Falls Buffet and Snoqualmie Café & Deli, offering guests even more choice and accessibility when it comes to their preferred gaming environment.

In addition to these gaming enhancements, all restaurants on property are 100% non-smoking, making Snoqualmie Casino & Hotel a premier destination for guests seeking an elevated, smoke-free entertainment and dining experience.

“We’re thrilled to offer our guests even more smoke-free options. The expansion of our non-smoking gaming floor reflects our ongoing efforts to listen to our guests and create an atmosphere that’s both exciting and comfortable for everyone,” said Mary Lou Patterson, CEO of Snoqualmie Casino & Hotel.