Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Gambling Income

What it is:

Gambling income is any money that is earned from games of chance.

How it works (Example):

Income from gambling is taxable money earned from games such as lotteries and keno or from institutions such as casinos or racetracks. 

For example, someone plays a state lottery and wins $1 million. This is gambling income and is taxable. Similarly, someone who wins $1000 at a casino’s roulette table is required to pay tax.

Why it Matters:

Gambling income is considered by tax authorities to be no different from any other taxable income and must be reported and assessed.