General information, not tax advice. Rules change; check with a professional.
United States
Gambling winnings — casino, sports, lottery and more — are taxable income federally and in most states.[1] Big wins may trigger a W-2G form. Losses can be deducted only if you itemise, only up to your winnings and, from the 2026 tax year, only 90% of losses. Sweepstakes prizes and prediction market profits have their own wrinkles:
To estimate your own bill, use the gambling winnings tax calculator.
When you get a W-2G (2026)
| Type of win | W-2G issued from | Before 2026 |
|---|---|---|
| Slots and bingo | $2,000 | $1,200 |
| Keno | $2,000 (net of the wager) | $1,500 |
| Poker tournaments | $5,000 (net of the buy-in) | $5,000 |
| Sports bets, horse racing, lotteries and other wagers | $2,000 and at least 300 times the stake | $600 and 300x |
The $2,000 floor is indexed to inflation from 2027.[2][3] Federal tax of 24% is withheld on some large wins (generally above $5,000 at 300x odds or more, and on lotteries). A W-2G is a reporting threshold, not a tax threshold: smaller wins are still taxable.
Winnings, losses and the 90% rule: an example
You win $10,000 and lose $10,000 during 2026, and you itemise.
| Before 2026 | From 2026 | |
|---|---|---|
| Winnings reported | $10,000 | $10,000 |
| Losses deductible | $10,000 | $9,000 (90%) |
| Taxable gambling income | $0 | $1,000 |
So a break-even year can still create a tax bill. If you take the standard deduction, you can't deduct gambling losses at all.
State taxes
Most states with an income tax also tax gambling winnings. A few — including Florida, Nevada, Texas, Washington, South Dakota, Wyoming, Alaska, New Hampshire and Tennessee — have no tax on wage income, so winnings aren't taxed at the state level. If you win in another state, you may owe tax there and claim a credit at home.
United Kingdom and Ireland
Players don't pay tax on gambling winnings; operators pay duties instead.
Canada
Winnings are generally not taxable for recreational players. Professional gamblers can be taxed on income. Interest earned on winnings after you receive them is taxable as normal.
Australia
Winnings are generally not taxed for recreational players.
European Union
Varies by country. A few examples:
| Country | Players' winnings |
|---|---|
| Germany | Not taxed for players, but a 5.3% tax on sports stakes is often passed on to bettors |
| France, Italy, Spain | Generally not taxed at licensed local operators; Spain taxes net winnings as income |
| Netherlands | Licensed online operators pay the games-of-chance tax (kansspelbelasting); some large prizes, such as lottery wins, are taxed at source |
| Sweden, Finland, Denmark | Generally tax-free at locally licensed operators |
Winnings from unlicensed or non-EU sites can be treated differently — another reason to stick to licensed operators.
Comparing regions at a glance
| Region | Who pays tax |
|---|---|
| United States | The player, on winnings (federal and most states) |
| UK and Ireland | The operator |
| Canada | The operator / province (recreational players are not taxed) |
| Australia | The operator (recreational players are not taxed) |
| EU | Varies — usually the operator at licensed local sites |
Keep records
Wherever you live, keep a simple log of deposits, withdrawals, wins and losses. It makes tax time — and honest budgeting — much easier. See bankroll basics.
FAQ: gambling taxes by country
Which countries tax gambling winnings for players?
Rules differ. The US taxes winnings as income, while the UK, Canada (for recreational players) and most of the EU tax the operators instead, with exceptions such as Spain. To estimate a US bill, use the gambling winnings tax calculator.
Are gambling winnings taxed in the UK?
No, for players. UK operators pay gambling duties instead.
Are gambling winnings taxed in Canada?
Generally not for recreational players; professional gamblers may be taxed.
