News Summary

• Gambling winnings are fully taxable and must be reported on a return.
• Thanks to a narrow provision in the tax code, people can offset the taxes from their gambling winnings.
• But losses can only be deducted by filers who itemize and who kept a record of both winnings and losses, and the deduction is capped at whatever winnings were reported.
• Last year, Americans wagered roughly $166 billion on sports alone, more than the country's film, music, book and museum industries generated combined.