Everybody knows or should know that you make, earn, win or steal money; you will owe the IRS a percentage of those funds.
So here are some tax rules for recreational gamblers: Whether you are playing the slots, betting on sports or buying lottery tickets, IRS wants a cut of your winnings but won’t subsidize your losses.
Gambling winnings are reported as other income on line 8b of Schedule 1 of the 1040. Gambling losses are only for those who are Itemizers, they can deduct losses on Schedule A, line 16, but only to the extent of winnings reported as other income.
The costs of lodging, meals, transportation and other gambling-related expenses can’t be written off.