Tax experts warn that both casual bettors and high rollers could face unexpected tax bills under increased IRS scrutiny in 2025.
IRVINE, CALIFORNIA / ACCESS Newswire / August 18, 2025 / The Internal Revenue Service is stepping up enforcement on gambling-related income, including online sports betting, casino jackpots, and fantasy sports winnings. Industry experts say many Americans are unaware that even small gambling wins - whether from a Las Vegas slot machine or a mobile betting app - must be reported to the IRS, regardless of whether the casino or platform issues a tax form.
"People tend to think that if they don't get a W-2G from a casino or a 1099 from an online betting site, they don't have to report the income," said a spokesperson for Clear Start Tax, a nationwide tax resolution and relief firm. "That's simply not true. All gambling winnings are taxable, and failing to report them can lead to penalties, interest, or even an audit."
The IRS requires taxpayers to report gambling income from all sources, including raffles, lotteries, poker tournaments, horse racing, and sports betting apps. Losses can be deducted, but only up to the amount of winnings - and only if properly documented.
Clear Start Tax warns that the rapid growth of online betting platforms has made it easier for the IRS to track wagers and payouts.
"Betting apps keep detailed transaction records, and those can be obtained by the IRS during an audit," the spokesperson added. "The days of assuming gambling income will fly under the radar are over."
To avoid costly mistakes, Clear Start Tax advises winners to:
Keep detailed records of all bets, wins, and losses.
Save receipts, tickets, and account statements from betting platforms.
Report winnings accurately on their tax return, even without an official tax form.
Consult a tax professional if winnings are substantial or occur in multiple states.
"Winning can be exciting, but ignoring the tax side of it can turn a lucky streak into a financial headache," the spokesperson said. "The best time to address gambling taxes is before the IRS contacts you - not after."
By answering a few simple questions, taxpayers can find out if they're eligible for the IRS Fresh Start Program and take the first step toward resolving their tax debt.
About Clear Start Tax
Clear Start Tax is a national tax resolution and relief firm dedicated to helping individuals and businesses address IRS and state tax issues. With a team of experienced professionals, the company provides strategies for resolving back taxes, negotiating settlements, and achieving compliance. For more information, visit www.clearstarttax.com.
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Contact Information
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SOURCE: Clear Start Tax
View the original press release on ACCESS Newswire:
https://www.accessnewswire.com/newsroom/en/business-and-professional-services/irs-targets-gambling-winnings-and-online-betting-clear-start-tax-1060152
