While there has been legislation trying to reverse this ruling, such as Kansas Senate Bill 111 proposed in February of 2021, gaming site lobbyists have been unsuccessful due to the loss in tax revenue for the state that would result. Since 2014, in Kansas, gambling losses are not deductible, even as an itemized deduction. As for taxpayers in Kansas, the treatment of gambling losses is even more unfavorable. Note: The Tax Cuts and Jobs act largely increased the standard deduction amounts fewer and fewer taxpayers are able to itemize deductions on their tax returns.įor example, if you had $6,000 in betting losses, but only $3,000 in winnings, you would only be able to deduct up to $3,000 in losses as itemized deductions. You cannot use gambling losses to reduce your ordinary taxable income from wages, rents, royalties, self-employment, etc.

If you can itemize deductions on Schedule A of your tax return, you will only be entitled to deduct gambling losses up to the amount of your gambling winnings. Instead, gambling losses are reported on Schedule A, so you can only deduct these gambling losses if you are able to itemize deductions on your federal tax return. If you have sports betting losses, you are not allowed to net the amount against your winnings to arrive at your taxable gambling winnings. When determining how much to report on your income tax return, bettors must add up the total amount of their winnings, which gives you your total gambling winnings.

Q: What amount of my gambling winnings/losses will be taxed?Ī: Regardless of whether you win $1 or $1,000, all gambling winnings are considered taxable income. This article discusses common questions regarding how Kansas currently intends to tax sports betting profits and federal tax implications. However, since this is a relatively new income source in Kansas, residents in Kansas may have questions. Online sports betting has been federally legal for several years, so the taxation rules for this income are well established.

With this new form of potential income, many Kansas residents are curious about how sports betting winnings or losses will be taxed federally and by the state. These online platforms include DraftKings, FanDuel, Barstool Sportsbook, BetMGM, PointsBet and Caesar’s Sportsbook. 1, 2022, online sports betting officially began on six different online platforms in Kansas.

On May 12, 2022, Governor Laura Kelly signed Senate Bill 84.

Draftkings sportsbook tax rules