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Ohio gambling taxes

Since sports betting is relatively new to Ohioans, a lot of people have questions about the potential tax implications. When you absorb the information on this page, you will fully understand every important detail about gambling taxes in Ohio.

Fact checked by: Gary Garry
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Table of contents

Do I have to pay taxes on gambling winnings in Ohio?

Yes. Under the tax code, gambling winnings are taxable income in Ohio like any other form of income. You have to claim that income when you file your taxes.

What is the tax rate on gambling winnings in Ohio?

You simply add the amount that you won to your overall taxable income, and you pay the rate that applies to you as a taxpayer.

When it comes to Ohio state income tax, they have a graduated rate structure. The Ohio Department of Taxation site is still listing figures for income earned in 2023 at the time of this writing.

For that year, people that reported $26,050 or less were completely exempt from the tax. For those with income that exceeded this amount, the rate spanned from 2.765% on the low end up to 3.99% for the highest income earners.

There are also municipal income taxes in Ohio, and the rate is 2.5% in Columbus, 2.25% in Toledo, 2.1% in Cincinnati, and 2% in Cleveland. Other municipalities have taxes as well with lower rates.

Is the IRS notified when you win money gambling?

Small wins are not reported to the Internal Revenue Service, but larger ones will be reported through the utilization of IRS Form W-2G. The form should be issued if you win:

  • $1200 or more playing slots or bingo
  • $1,500 or more playing keno
  • $5,000 and up in a poker tournament
  • $600 or more on any other type of bet that is at least 300 times the amount of the original wager.

Do you have to report the income if you do not receive Form W-2G?

Yes, income that is derived from gambling is taxable in Ohio. To follow the letter of the law, you must report the income, even if it is $10.

Are Ohio betting apps required to withhold taxes on winnings?

In most situations, the answer is no, Ohio betting apps will not withhold a portion of your winnings. However, there are exceptions to the rule.

This is a quote from an IRS publication on gambling income and taxes:

“If you have won more than $5,000, the payer may be required to withhold 28% of the proceeds for Federal income tax. However, if you did not provide your Social Security number to the payer, the amount withheld will be 31%.”

On the state level, betting operators are required to withhold 4% of winnings that exceed the threshold for the form of gambling in question.

Ohio Lottery taxes

As we have emphasized, there are no separate taxes for the lottery or any other type of gambling in Ohio. Income is taxable, it’s as simple as that. If you win the lottery, you are receiving income, so you have to claim it along with your other income.

Benefits of Ohio gambling taxes

This is the way that the Gross Casino Revenue tax proceeds are utilized by the state:

  • 51% to the County Fund
  • 34% to the Student Fund
  • 5% to the Host City Fund
  • 3% to the Ohio State Racing Commission
  • 3% to the Ohio Casino Control Commission
  • 2% to the Law Enforcement Training Fund
  • 2% to the Problem Gambling and Addictions Fund

With regard to sports gaming revenue, after expenses have been paid, 98% of the money is used to fund extracurricular youth activities and interscholastic athletic programs. The remaining 2% is utilized to support responsible sports gambling.

OH gambling winnings tax calculator

There is no authentic Ohio gambling tax calculator because there isn’t a gambling tax at all. Plus, people are in different tax brackets, and they may or may not be entitled to certain deductions, credits, etc.

There are well-developed tax calculation tools out there for income taxes in general. Gaming winnings are income as we have repeatedly emphasized, so you can include your gaming winnings if you use one of these income tax calculators.


Do I need to report out-of-state gambling winnings?

Yes, you have to report the income on your returns if you win money in another state.

How do I declare group gambling winnings?

Let’s say that you and some other people at work chip in to buy some lottery tickets and you win. Under those circumstances, the payer (in this instance the Ohio Lottery Commission) will complete Form 5754 when they prepare the W-2G to notify the IRS that the payout will be distributed among members of a group.

Can I deduct gambling losses when I file my tax returns?

You are allowed to deduct gambling losses to offset your winnings. However, if you did not turn a profit during the tax year, you cannot deduct your losses.

What are the consequences if I don't report my gambling winnings?

If you fail to report your gambling winnings, the Internal Revenue Service will impose a Failure to Pay penalty. They will tack on .05% for every month that you do not pay what you owe, up to a maximum of 25%.

How do I report my winnings to the IRS?

Gambling winnings are reported as “other income,” which is on line 8 of Schedule 1 of Form 1040.

Fact checked by: Gary Garry