Documentation is your only defense against the IRS. Without proper records, you can't deduct a single dollar of gambling losses—which means you'll be taxed on 100% of your reported winnings. Here's exactly what to track, what to save, and how to stay organized for the 2026 tax season.
With the new 90% loss deduction cap, you're already getting squeezed. If you can't prove your losses, you lose the right to deduct them entirely. That's not a 10% haircut—it's a 100% loss of deductions.
The Basic Rules
Before we get into the checklist, here's what the IRS requires:
- You must itemize. Gambling losses are only deductible on Schedule A. If you take the standard deduction, you can't deduct gambling losses at all.
- Losses can only offset winnings. You can't use gambling losses to reduce other income (like your salary). If you win $5,000 and lose $10,000, you can only deduct $5,000.
- The 90% cap applies. Starting 2026, you can only deduct losses up to 90% of your winnings, not 100%.
- You need contemporaneous records. "I think I lost about $5,000" doesn't cut it. You need documentation created at or near the time of the gambling activity.
The Master Checklist
📋 Documents to Collect
All W-2G Forms
Sportsbooks send these for wins over $600 at 300x+ odds. Keep every one—they're also sent to the IRS.
Annual Win/Loss Statements
Every Ohio sportsbook provides these. Download from each app in January covering all of 2026.
Complete Bet History Exports
Monthly exports from each sportsbook. More detailed than the annual summary—shows every individual bet.
Bank/Payment Records
Statements showing deposits to and withdrawals from sportsbooks. Corroborates your betting activity.
Personal Betting Log
A spreadsheet or app tracking every bet with date, amount, type, and result. Your backup documentation.
Receipts from Retail Betting
If you bet at kiosks or casino sportsbooks, keep the paper tickets and receipts.
Where to Get Your Records
Every Ohio sportsbook is required to provide win/loss statements. Here's where to find them:
| Sportsbook | How to Access | Notes |
|---|---|---|
| FanDuel | Account → Statements → Tax Documents | Available by mid-January |
| DraftKings | Account → Settings → Tax Documents | Also shows monthly summaries |
| BetMGM | My Account → Documents → Tax Statements | May need to request via support |
| Caesars | Account → Responsible Gaming → Tax Info | Usually available late January |
| bet365 | My Account → History → Statement | Can generate custom date ranges |
| Fanatics | Account → Settings → Tax Documents | Check after Jan 15 |
| Prime Sports | Account → Transaction History | Contact support for annual summary |
Download these statements as soon as they're available in January. Sportsbooks occasionally have technical issues, and you don't want to be scrambling at tax deadline.
What the IRS Wants to See
According to IRS Publication 529, your gambling records should include:
- Date and type of gambling activity
- Name and address of establishment (or app name)
- Names of other persons present (for in-person gambling)
- Amount won or lost
For sports betting specifically, your records should also show:
- The event you bet on (team/game)
- Type of bet (spread, moneyline, parlay, etc.)
- Odds at time of bet
- Stake amount
- Outcome and payout
The sportsbook's bet history export typically captures all of this. Your job is to download it and keep it.
Building Your Tracking System
Here's a step-by-step approach to staying organized throughout the year:
Create a Dedicated Folder
Set up a folder (cloud or local) called "2026 Gambling Tax Records" with subfolders for each sportsbook.
Monthly Exports
On the 1st of each month, export the previous month's bet history from every app you use. Name files clearly: "FanDuel_Jan2026_BetHistory.csv"
Track Running Totals
Maintain a simple spreadsheet with monthly wins, losses, and net by sportsbook. Update after each monthly export.
Save W-2Gs Immediately
When you hit a big parlay, screenshot the W-2G confirmation in the app. The paper copy comes later, but capture it now.
January Reconciliation
In January 2027, download all annual win/loss statements. Compare to your running totals. Resolve any discrepancies before filing.
Common Mistakes to Avoid
Mistake 1: Only Tracking Wins
Your losses are what you're trying to deduct. If you only kept records of winning bets, you have no documentation for losses. The IRS will allow zero deductions.
Mistake 2: Relying on Memory
"I'm pretty sure I lost about $8,000" isn't documentation. If audited, you need actual records. No records = no deduction.
Mistake 3: Ignoring Small Books
If you have accounts at 6 sportsbooks but only get statements from 3, you're missing half your data. Every app counts.
Mistake 4: Not Separating by Year
2026 losses can only offset 2026 wins. Make sure your records clearly separate tax years, especially for bets placed in December that settle in January.
Mistake 5: Destroying Records Too Soon
Keep gambling records for at least 3 years (the standard audit window), and ideally 6-7 years if you reported significant activity.
Bonus bets count as $0 stake for tax purposes—you didn't risk your own money. But winnings from bonus bets ARE taxable. Make sure your tracking distinguishes between cash bets and bonus bets.
If You Haven't Been Tracking
Don't panic. Here's what you can still do:
- Download everything now. Most sportsbooks retain bet history for 1-2 years. Go get it.
- Check your email. You may have bet confirmations, win notifications, or statement summaries in your inbox.
- Review bank statements. Deposits and withdrawals to sportsbooks create a paper trail.
- Request statements from support. If the app doesn't let you export, contact customer service. They're required to provide this information.
- Start fresh now. Even if 2024/2025 records are incomplete, you can build a solid system for 2026 forward.
Itemizing vs. Standard Deduction
Remember: you can only deduct gambling losses if you itemize on Schedule A. The 2026 standard deduction is:
- Single: $14,600
- Married Filing Jointly: $29,200
If your total itemized deductions (including gambling losses, mortgage interest, state taxes, charitable donations, etc.) don't exceed the standard deduction, you're better off not itemizing—which means you can't deduct gambling losses anyway.
For many casual bettors, this is actually the case. Run the numbers before assuming you'll itemize.
The Bottom Line
Good documentation is the difference between deducting your losses and paying taxes on phantom income you never actually made. The system doesn't have to be complicated:
- Monthly: Export bet history from every app
- As it happens: Screenshot W-2G confirmations
- January: Download annual statements and reconcile
- Always: Keep records for 3+ years
Ten minutes a month now saves hours of stress (and potentially thousands of dollars) at tax time. Start your system today.
Understand What You're Deducting Against
The 90% cap changes everything. Make sure you know the new rules.
Read: The 2026 Tax Cliff