How is gambling taxed?

Taxable Gambling Winnings

Regarding gambling winnings, the answer to whether or not they are taxable depends on several factors. Generally speaking, any winnings exceeding the wager amount are considered taxable income. If you wager $100 and win $500, you must report the additional $400 as taxable income. 

In addition, the type of gambling you are participating in also affects whether or not your winnings are taxable. For example, lotteries, sweepstakes, and bingo winnings are considered taxable. On the other hand, poker winnings are not regarded as taxable in most cases.