Can You Deduct Football Betting Losses on Your Federal Tax Return?

The IRS rule here is simple and unforgiving. Gambling losses may be deducted only up to the amount of your gambling winnings, and only if you itemize deductions on Schedule A — not if you take the standard deduction. That's straight out of IRS Publication 525. If you won $2,000 betting on NFL games this season and lost $3,500, you can deduct $2,000 in losses. The remaining $1,500 loss? Gone. You cannot carry it forward, and you cannot use it to offset wages or other income.

Before you dive into deduction math, make sure you understand how your winnings are reported in the first place. Sportsbooks issue a W-2G form when a single winning bet pays $600 or more and is at least 300 times the wager; always verify the exact current thresholds at IRS.gov before filing. If you don't provide a valid taxpayer identification number, the sportsbook may apply federal backup withholding at 24% on qualifying winnings. That's money out of your pocket before you ever see it.

Do I have to itemize to claim gambling losses?

Yes, full stop. If you claim the standard deduction — which the majority of US taxpayers do — gambling losses provide zero federal tax benefit. You'd need your total itemized deductions, including any gambling losses, to exceed the standard deduction threshold before itemizing even makes sense. Run the numbers with a tax professional before assuming this deduction helps you.

What records do I need to keep?

The IRS expects a gambling log: dates, locations or apps, types of bets, amounts wagered, and amounts won or lost. Screenshots of your sportsbook bet history, bank statements, and any W-2G forms you receive all serve as supporting documentation. Sloppy recordkeeping is the fastest way to lose a deduction if you're ever audited. Keep everything organized by tax year.

Does this apply to online football betting specifically?

Yes. Whether you're betting spreads on FanDuel from your couch in New Jersey or placing moneylines on DraftKings in Colorado, the same federal rules apply. Online wagering winnings are ordinary income; losses are deductible only to the extent of those winnings, and only with itemized deductions on Schedule A. State tax treatment varies — check your state's rules separately and verify with a local tax professional, since state law changes frequently and legality of sports betting differs by state.

If you're newer to how betting lines and bet types actually work, start with our complete US guide on how to bet on football before worrying about the tax side. And if you're just getting started and haven't placed your first bet yet, our beginner's guide walks you through placing your first wager step by step. Tracking your bets carefully from day one makes tax season far less painful.

What about state income taxes on my winnings?

State rules vary widely. Some states with legal sports betting also tax gambling winnings as ordinary income; others have no state income tax at all. A few states may not conform to the same loss-deduction rules the IRS allows. You need to verify your specific state's current rules — do not assume your state mirrors federal treatment.

Managing your gambling activity responsibly from the start keeps both your finances and your tax situation cleaner. See our page on responsible gambling tools for football bettors, including deposit limits and self-exclusion options. 21+ only. Gambling problem? Call 1-800-GAMBLER.