Most importantly, be sure to check your W-2G and check with a financial accountant on any potential tax obligations. Moreover, even if you win out-of-state, you may still need to pay taxes on those winnings in that state. For example, each state sets its own regulations regarding lottery or sports betting if available. However, there are some states where you do not pay taxes on gambling.įor other states that require an additional state income tax on your gambling winnings, this amount is subject to each state’s laws. The following table provides the winning threshold where the gambling operator or casinos supplies a Form W-2G.Īlso, depending on your state, you may be subject to state taxes. Legal online gambling that is locally offered in USA states is available, but fewer than 10 states actually allow all forms of. Online casinos are not required to have minimum payouts. First, there may be federal taxes subject to a 24% flat rate. By statute, slot and video machines in Colorado casinos must pay out between 80 percent and 100 percent. Ultimately, there are two different taxes to think about when it comes to gambling winnings.
