Yes, the IRS requires you to pay tax on all sports betting winnings, as well as all other gambling winnings, just as you would any other income. But you can also deduct losses from your taxable income if you itemize.

New tax law changes that go into effect in 2026 reduce the percentage of sports betting and gambling losses you can deduct to 90% from 100%. That means that even if you break even, you may still be taxed on some winnings.

If you are placing sports bets or gambling, it’s always smart to keep good records for the IRS, especially if you are planning to deduct losses from your income. Working with a Tax Pro can ensure you have your bases covered and get every dollar you deserve. Book today.

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Sharon Brucker, CPA Senior Tax Research Analyst Published on: December 10, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.