FanDuel Tax Guide 2026: Steps To Report Your Betting Winnings

When you bet on sports and win, you have to report your winnings to the Internal Revenue Service (IRS). Gambling winnings count as income for tax purposes. You must report your winnings as regular income. However, you can also deduct a portion of your sports betting losses.

Understand your tax reporting obligations for FanDuel and other sportsbook apps. If you have questions about sports betting income, losses, and deductions, talk to a local tax law attorney.

Reporting FanDuel Winnings

FanDuel is one of the most popular sports betting apps in the country. With over 12 million registered users, FanDuel lets bettors wager on their favorite teams and sporting events, including horse racing, football, boxing, and the Olympics.

When sports bettors win enough money, FanDuel will report the taxable income to the IRS. The IRS requires you to report income from whatever source derived, including gambling winnings.

Your tax reporting and withholdings can vary, depending on:

• Type of gambling
• Amount of the wager
• Amount of your winnings

For example, reporting requirements for slot machines and bingo differ from those for keno winnings.

Betting apps must report your winnings over a certain amount ($2,000 or more, at least 300 times the wager). For total winnings over $5,000, sportsbook sites will also withhold 24% for your estimated taxes.

Sports betting platforms like FanDuel do not report your annual wins and losses to the IRS. However, when you win over a certain amount, FanDuel will report the win to the IRS and issue you a tax form. However, even if FanDuel does not send you a tax form, the IRS still expects you to report your gambling income.

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Deducting FanDuel Losses

You can deduct your sports betting losses against your winnings if you itemize on a Schedule A. Historically, bettors could deduct up to 100% of their gambling losses against their winnings. However, as of tax year 2026, you can only deduct up to 90% of your gambling losses against your winnings.

For example, in calendar year 2026, you win $5,000 in basketball bets, but you lost it all in football betting. Your FanDuel app reports your gambling income of $5,000. However, you can only deduct up to 90% of your losses ($4,500). You must still pay taxes on the $500 as income based on your tax bracket.

Before you start deducting your gambling losses, make sure you have documentation. If the IRS audits your tax return, you need record-keeping evidence to back up your losses. You must keep an accurate diary or record of your winnings and losses. Detailed records can include receipts, tickets, bank statements, and other records to show the amount of your winnings and losses.

One of the benefits of using an online sportsbook like FanDuel or DraftKings is that it keeps a record of your finances. Your player activity statement should show your funding, winnings, wagers, withdrawals, and other information. This information can help when it’s time to file your taxes by demonstrating your gambling income and losses.

Form W-2G for FanDuel Winnings

Form W-2G shows “Certain Gambling Winnings” for reporting gambling income to the IRS. In 2026, there is a $2,000 threshold for reporting gambling activity income. Your online sportsbook may send you a W-2G for winnings over $2,000 that are at least 300% of the wager. Form W-2G indicates the payer’s name and the winner’s name.

The form also indicates the following:

• Reportable winnings
• Date won
• Type and amount of wager
• Federal income tax withheld
• Local and state income tax withholdings

A casino or betting platform can also issue a Form 1099-Misc for other income. Form 1099-Misc is generally for promotional winnings that are not based directly on a wager or sports bet. The IRS considers these promotional winnings as income, subject to your gambling tax rate.

When Will FanDuel Issue a Form W-2G?

Some sports betting platforms issue Form W-2G even when it is not federally required. According to FanDuel, they will issue a Form W-2G for sports betting transactions under the following:

• Winnings (reduced by wager) are $600.00 or more; and 
• Winnings (reduced by wager) are at least 300 times the amount of the wager

In most states, your FanDuel W-2G form will come from “Betfair Interactive US LLC dba FanDuel Sportsbook.” In Indiana, Blue Chip Casino, LLC issues the form.

If you win money on FanDuel but it is below the minimum triggering amount, you are still obligated to report your gambling income. You can report gambling winnings as “Other Income” on a Schedule 1 (Form 1040).

State Income Tax Reporting

Each state has its own rules for taxing gambling income, mandatory reporting, and withholding. For tax reporting, most states follow the federal threshold of $2,000 for reporting gambling winnings.

However, some states have lower thresholds triggering reporting. Talk to a local tax law attorney or CPA about your state and local tax laws.

Income Tax Questions for FanDuel Wins and Losses

When you’re betting on big games, you may not be thinking about your tax obligations. Many sports bettors are surprised to get tax forms months after they won. This leaves many taxpayers scrambling to find records of their winnings and losses to reduce their federal income tax liability.

If you have questions about your tax reporting and filing obligations, talk to your tax professional or a local tax lawyer. Your attorney can provide legal advice about what you must report, what you can deduct, and gather evidence to support your tax reporting. A tax attorney can also represent you in negotiations with the IRS if you don’t have the money to pay your tax bill. For legal tax advice, talk to a local tax law attorney.