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Sport Betting at Casinos

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A client just dropped off his gambling statement (did not receive any W2-g's) that show the following amounts for Sports Betting:


Amount of winnings $1432418.00

Amount wagered  $1474520.00


I know he has more losses than wins and, if required to report the total winnings can only deduct the amount of losses up to his winnings on Schedule A, but the big problem is the State of Illinois.

If he reports his winnings on 1040 line 21, it will all be taxed by IL which does not allow itemized deductions.  $71620 of IL tax!!

Is this report by the Sports Book just line the coin in-out report for slot winners and not reportable as winnings on his tax return unless W2-g is received for single wins of over $5000?  Or is there something else I am missing here?

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If this person is not a professional gambler, I think you don't have to report it. For sure he lost money and we don't report income and loses on people that go to the casino a couple of times a year unless they win.

A W2-G is issued when the winning are bigger than certain percentage of the wager, correct?

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I believe all my clients go at least once a year to the casinos.  I guess I will have to report their income on their 1040 even thought they lost a couple of hundred dollars. 

My questions will be... did you work, "yes", show me the W2. Did you collect unemployment? "yes", show me the 1099-G, did you take out 401k, "yes", show me the 1099-R. Did you go to the casinos in 2020, "yes I went one time".  How much did earn? "I lost $200"... did you keep a log? "no", how many times you won a dollar on two dollars during the session? "I would say about 50 times I won a dollar and about 20 times I won 2 dollars.... but wait, I got the free games and I got one hundred dollars one time and the next time I only got $43.26. On another machine, I hit the mini jackpot for $10." Off course my pencil will be well sharpened and I will we adding those times he won to come up with the winning amount. Then I will move on to see how he knew that he lost $200 during his only visit.  I will do that for every client that visited a casino and I will tell them that this year (2021) to keep a log and keep writing every time the win something during their only visit.


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8 hours ago, Lion EA said:


If all your clients go to the casinos at least once a year, you might want to give them a gift of the Lady Luck Gambling Diary: www.LadyLuckDiary.com

I have a better idea, I rent a bus, take them to the casino and I stay with them writing down their winnings and losses. 

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