In Ohio, gambling winnings you will need to pay both state and federal taxes. For state taxes, Ohio treats gambling winnings as “Other Income”, which is taxed at the same rates as regular income. The state uses a graduated tax scale based on your total income, with rates ranging from 0% for incomes under $22,150 to 4.797% for incomes over $221,300 in 2024. Additionally, sportsbooks and casinos must withhold 4% of your gambling winnings at the time of payout.
On the federal level, gambling winnings are considered taxable income and must be reported on your tax return. Winnings are documented on Federal Form W-2G, which is issued by the payer (such as the sportsbook or casino) for winnings over $600. These winnings must be reported on Form 1040, Schedule 1, under “Other Income”.
If you have gambling losses, they can be deducted on your federal taxes but not on your Ohio state taxes. To deduct losses, you must itemize your deductions on Schedule A (Form 1040) and keep a detailed record of your wins and losses.
