Canada
What You Need to Know About Gambling and Your 2021 Taxes

The deadline for filing 2021 federal tax returns looms on April 18 this year and for gamblers, it’s an occasion to be reminded of how the tax code addresses their gaming activity. Generally speaking, that’s not too kindly.
The bottom line is simple and stern. As a rule, all income from gambling — including real money online casino play — must be reported eventually on Line 8 of the familiar Form 1040 (along with inclusion on Schedule 1).
To some, it may come as a surprise that gambling income is reported as a gross figure and not a net result. That stands in contrast to, say, capital gains or losses realized in stock transactions, which are reported on Line 7 of the Form 1040 (usually, along with a Schedule D).
In plain English and by example what that means is this: If a taxpayer wins $500 playing the slots in a casino on Monday and then loses $800 playing the slots on Tuesday, the taxpayer is required to report the $500 win on his Form 1040 on Line 8. The $800 loss would be accounted for on Schedule A (Itemized Deductions) — but there are caveats.
The first may be familiar to taxpayers who gamble. Reported gambling losses cannot exceed gambling wins so in the above example, the taxpayer would have an allowable deduction of just $500 for net zero result (the gamble eats the excess $300 loss). But then there’s another issue.
The taxpayer gets to account for gambling losses only if he/she itemizes deductions on Schedule A. And as a result of the 2017 tax revision, the allowance for the standard deduction was raised to a point where it doesn’t make financial sense for the vast majority of taxpayers to itemize their deductions.
What that means for many taxpayers who gamble relatively modestly is that they have no opportunity to deduct any gambling losses. So, the gaming “win” stands alone as income even if the aggregate gambling activity was a net loss.
As an aside, the standard deduction for married couples filing a joint return for tax year 2021 is $25,100. For single taxpayers and married individuals filing separately, the standard deduction is $12,550. For heads of households, the standard deduction is $18,800.
The impacts of gross gambling income on line 8 may be subtle but can be significant. For instance, that amount gets carried down to Line 11, adjusted gross income, which can affect a range of tax circumstances, such as how much of the taxpayer’s Social Security benefits are taxable.
FUNDAMENTAL TAX RULES FOR GAMBLERS
- Taxpayers who gamble should remember that all gambling winnings must be reported as income regardless of whether the operator issues documentation, such as a W-2G or a Form 1099.
- Unfortunately, gamblers cannot “net” their winnings and losses when reporting gambling income. Gambling income is usually reported on Schedule 1 and then carried over to Form 1040, Line 8.
- Gambling losses are accounted for on Schedule A, Itemized Deductions, and taxpayers must itemize to get the benefit of a gambling loss deduction. However, taxpayers have to choose between itemizing deductions or taking the standard deduction.
- If gambling losses are taken as a deduction, they cannot exceed the amount of gambling wins.
- Win or lose, taxpayers should keep a journal of their gambling activity. They should note where, when, what games were played, and how much was won or lost. Taxpayers should also keep any evidence of wagering activity, losses included.
- State taxes may also be due on gambling winnings and rules vary from state to state. Gamblers should familiarize themselves with their state’s tax policies on gambling income.
OTHER THINGS TO KEEP IN MIND
The proliferation of gambling, both bricks-and-mortar and on the internet, has created complications for taxpayers that should be addressed by a tax professional but there are some things taxpayers should keep in mind.
As mentioned earlier, keeping a journal of gambling activity be part of your record-keeping.
Remember, all gambling winnings are reportable even if a gambling operator doesn’t issue paperwork, often a W-2G or a 1099-MISC or a 1099-K.
And speaking of W-2Gs, here are the occasions when the Internal Revenue Service says a W-2G should be issued by the gambling operator:
- 1. The winnings (not reduced by the wager) are $1,200 or more from a bingo game or slot machine;
- 2. The winnings (reduced by the wager) are $1,500 or more from a Keno game;
- 3. The winnings (reduced by the wager or buy-in) are more than $5,000 from a poker tournament;
- 4. The winnings (except winnings from bingo, slot machines, keno, and poker tournaments) reduced, at the option of the payer, by the wager are:
- a. $600 or more, and
- b. at least 300 times the amount of the wager; or
- 5. The winnings are subject to federal income tax withholding (either regular gambling withholding or backup withholding).
What may irritate taxpayers who gamble is how gambling activity is treated as opposed to something like day-trading stocks. In the latter case, which also involves substantial risk-taking, the stock day-trader gets to net losses against gains without having to choose between itemizing deductions and taking the standard deduction.
UNFAIRNESS TO GAMBLERS
The unfairness to taxpayers who gamble, particularly those who play at modest levels, was noted by the American Gaming Association, the trade group that represents the gambling industry, when the 2017 tax code was being revised.
“Under such a higher standard deduction, small and mid-level slot machine players may not be able to itemize their deductions, even with their gaming losses, and hence may not be able to offset gaming wins reported as income with the full amount of their gaming losses,” the AGA said in a letter to Capitol Hill.
“AGA strongly recommends, as a matter of tax simplification, that gaming players should be permitted to subtract gaming losses from gaming winnings in order to compute their taxable net gaming income for purposes of reporting adjusted gross income, without being required to itemize their deductions.”
Unfortunately for gamblers, that recommendation was not taken by the Congress.
For years, the AGA has been trying to get the threshold for issuing W-2Gs raised from $1,200 to $5,000 without any luck. However, early in March, the Congressional Gaming Caucus advanced an effort to raise the slot tax threshold to $5,000 with bipartisan legislation and also provide a mechanism for future increases based on inflation. The current $1,200 slot tax threshold has not been adjusted for inflation since 1977 and, since then, the instances of $1,200 W-2Gs has skyrocketed.
DON’T FORGET STATE TAXES
In addition to concerning themselves with federal taxes, gamblers need to deal with state income tax obligations. Some states allow deductions for losses, some do not. Some states allow for losses and wins to be netted, most do not.
Michigan, for example, changed its tax laws recently to allow for gambling loss deductions where there are winnings. Mississippi, meanwhile, has its 3% tax where the gaming establishment withholds a 3% “nonrefundable” tax at the time a W-2G-level jackpot is hit regardless of whether the winner is a state resident.
Casino customers from outside the country get separate treatment. In many cases, the United States has tax treaties with other countries that dictate how non-U.S. gamblers are treated from a tax perspective. For instance, in the United Kingdom, gambling winnings are not taxed and the U.S. tax treaty with the UK means that U.S. taxes are not withheld from those gambling customers.
Powered by WPeMatico
AGCO
Prime Skill Games Inc. Official Response to AGCO Press Release

As CEO of Prime Skill Games Inc., I feel compelled to address recent comments made by the Alcohol and Gaming Commission of Ontario regarding so-called unapproved gambling machines in convenience stores across the province.
Let me be perfectly clear
Our machines are not gambling devices. They are entirely skill-based, fully compliant with the law, and built on the fundamental idea that players are in control. The outcome of every session is determined solely by the player’s ability, not by random chance.
Prime Skill Games is proud to be the only true skill game operating in Ontario today.
We categorically reject any suggestion that our products fall under the definition of unregulated gambling. Such statements are inaccurate, misleading, and fail to recognize the critical distinction between games of skill and games of chance.
We stand firmly behind the legality of our machines and the integrity of our operations. We will demonstrate this through every available means, whether through legal documentation, expert analysis, or, if necessary, before the courts. We are prepared and unafraid to defend the truth.
To our players, partners, and business community, we want to reassure you that our mission has not changed. We are committed to offering a responsible, transparent, and innovative entertainment experience. We will not be intimidated by broad and baseless accusations, and we will continue to move forward with strength and clarity.
Sincerely
Matt Zamroźniak
Chief Executive Officer
Prime Skill Games Inc.
The post Prime Skill Games Inc. Official Response to AGCO Press Release appeared first on Gaming and Gambling Industry in the Americas.
Canada
LuckyStart Casino Adds New Payment Method

LuckyStart Casino has announced the addition of a new payment method – Interac – available for all players in Canada, in order to make it easier for their customers to fund their account balance and cash out their winnings quickly.
The brand is aware of the popularity of this payment method amongst Canadian players, and hence, it has decided to add it and enable flexible deposit and withdrawal limits, in order to be considered as the best Interac casino in Canada, especially since the brand is also releasing Interac-exclusive bonuses and promotions.
Furthermore, LuckyStart has announced flexible limits for deposits and withdrawals, to make it easier for players to fund their account balance and cash out their winnings, offering instant approval and same-day processing, which are traits that LuckyStart believes are going to position it as the best Interac casino in Canada.
LuckyStart now supports Interac on the desktop and mobile website, offers exclusive bonuses for Interac bonuses, as well as instant withdrawals, and unrestricted access to their catalog of 5000+ real money games.
LuckyStart believes there is no better way to celebrate an accomplishment in the online gambling world than by launching new bonuses and promotions. That’s why the brand has released a new welcome bonus package for all players who deposit via Interac, as LuckyStart envisions becoming the best Interac casino in Canada.
This new welcome bonus package available for all Interact deposits rewards players with up to $4800 in free bonus money across their first 4 deposits, along with 400 Free Spins. When compared to the welcome packages offered by other Interact casinos, LuckyStart stands out with the biggest offer currently available.
The post LuckyStart Casino Adds New Payment Method appeared first on Gaming and Gambling Industry in the Americas.
Alcohol and Gaming Commission of Ontario
Titanplay Re-launches in Ontario

Titanplay, a fully licensed and regulated online gaming platform by the Alcohol and Gaming Commission of Ontario (AGCO) and iGaming Ontario (iGO), announced its official re-launch in the Canadian province. This strategic re-entry introduces a refreshed experience tailored to Ontario’s dynamic audience of online casino players and sports bettors.
The re-launch marks a new chapter for Titanplay, with significant upgrades to its casino and sportsbook. Designed for Ontario residents, the new platform delivers a secure and compliant online gaming environment to casual players, strategic bettors, and high rollers alike.
Titanplay now offers an expanded library of certified casino games, including popular slots, live dealer tables, and exclusive titles from leading industry providers. The integrated sportsbook provides real-time odds and wide-ranging markets – from NHL and NBA to international soccer, tennis, and more. Players can enjoy faster performance, improved mobile access, and responsible gaming tools aligned with Ontario’s regulations, whether they prefer placing bets or spinning the reels.
The Titanplay’s platform is optimized for both desktop and mobile devices, offering seamless navigation and secure transactions. The 24/7 customer support, intuitive account management, and localized payment options round out the updated user experience.
Operating within Ontario’s regulated iGaming framework, Titanplay adheres strictly to all AGCO and iGO compliance requirements. This re-launch is more than just a platform update; it’s a commitment to local Ontario players who deserve fairness, choice, responsible gaming environment, data protection, and accountability from their gaming provider.
Titanplay is now live and accepting registrations across Ontario. Players must be 19 years of age or older and reside within the province to access the platform.
The post Titanplay Re-launches in Ontario appeared first on Gaming and Gambling Industry in the Americas.
-
Asia6 days ago
Think Tank Advocata Questions Independence and Integrity of Proposed Gaming Regulator in Sri Lanka
-
Baltics6 days ago
HIPTHER Joins Forces with Ace Alliance as Strategic Media Partner – Kicking Off with Ace Alliance Riga 2025
-
Canada5 days ago
LuckyStart Casino Adds New Payment Method
-
Brazil5 days ago
Evolution Launches First Live Casino Studio in Brazil
-
Alcohol and Gaming Commission of Ontario5 days ago
Titanplay Re-launches in Ontario
-
Kambi6 days ago
Kambi appoints experienced LatAm executive Mateo Lenoble as Head of Sales in Latin America
-
Nasdaq:LTRYW5 days ago
Sports.com and Lottery.com Head to Toronto as Callum Ilott and Louis Foster Prepare for Final Street Battle of 2025
-
AGCO6 days ago
AGCO takes action to remove unapproved gambling machines from Ontario convenience stores