W-2G: Certain gambling income. All gambling winnings are taxable including, but not limited to, winnings from: Lotteries; Raffles; Horse races; Casinos; Gambling losses. Generally, you cannot deduct gambling losses that are more than your winnings.
- California Tax On Gambling Winnings
- Ca Tax On Gambling Winnings Rate
- Does California Tax Gambling Winnings From Other States
- Casino Winnings Are Not Tax-Free. Casino winnings count as gambling income and gambling income is always taxed at the federal level. That includes cash from slot machines, poker tournaments, baccarat, roulette, keno, bingo, raffles, lotteries and horse racing.
- Gambling losses are not tax-deductible if you are a recreational gambler. This only seems fair considering Canada Doesn’t tax recreational gambling winnings. On the flip side, professional gamblers can write of gambling losses. This too is reasonable since they must pay tax on their gambling winnings.
Here is a table that shows tax status for both recreational and professional gamblers.
California Tax On Gambling Winnings
| Form of Gambling | Tax Status for Recreational Gamblers | Tax Status for Professional Gamblers |
| Land-Based Casino | Non-Taxable | Taxable |
| Online Casino | Non-Taxable | Taxable |
| Sports Betting | Non-Taxable | Taxable |
| Bingo | Non-Taxable | Taxable |
| Lottery | Non-Taxable | Non-Taxable |
| Horse Racing | Non-Taxable | Taxable |
| Poker | Non-Taxable | Taxable |
| Pools/Pari-Mutuel | Non-Taxable | Taxable |
| Raffles | Non-Taxable | Non-Taxable |
| Pull-Tabs | Non-Taxable | Non-Taxable |
| Scratch ‘n Win | Non-Taxable | Non-Taxable |
| Fantasy Sports | Non-Taxable | Taxable |
| eSports | Non-Taxable | Taxable |
Recreational Gamblers
The overwhelming majority of Canadian gamblers are classified as recreational gamblers. They might buy lottery tickets, play casino games, or bet on sports among other things. They might win, lose, or break even. It doesn’t matter as long as their gambling isn’t a primary and ongoing source of income.
Professional Gamblers
Professional gamblers treat gambling like it’s a business. Typically, professionals use gambling as their main source of income. Daniel “Kid Poker” Negreanu is an example of this. He’s made tens of millions of dollars grinding it out at the poker table. However, earning vast amounts of money through gambling doesn’t necessarily make one a professional gambler. Nor does spending a lot of time gambling. But, combine spending a lot of time gambling with consistently eking out a profit and you may fit the bill.
Ca Tax On Gambling Winnings Rate
Do You Pay Tax on Gambling Winnings?
Does California Tax Gambling Winnings From Other States
If you win big at a casino or on the lottery, you’re probably going to ask yourself: “Do I have to pay taxes on these gambling winnings?”. The answer depends on whether you are a professional gambler or a recreational gambler. Canadian recreational gamblers do not pay tax on gambling winnings. It matters not if they win a few thousand dollars at a casino blackjack table or if they win tens of millions of dollars playing the lottery. It’s not subject to taxation.