Nevada online gambling taxes

While Nevada allows some forms of online gambling, it’s more restricted than you might assume. Online poker is legal through licensed sites like WSOP.com, and online sports betting and online horse race betting are legal as well. While Daily Fantasy Sports (DFS) is legal, it is not regulated by the state. However, NV players can still use sites like DraftKings and FanDuel to play.

Nevada does not have state-regulated online casinos, so you won’t be able to play legally at an online casino offering slots, table games, or other casino games. Sweepstakes casinos are the next best alternative if you want to play casino-style games, as they operate under US sweepstakes laws, and are permitted in NV. This means you won’t wager using real-money, but virtual currency instead. 

Nevada does not have a state income tax. In other words, Nevada does not require any state income tax; however, all NV residents who win money from gambling online are obligated to pay federal taxes. This means that the online sports betting establishment holds back 24% of your winnings for federal tax purposes at the time of a payout. This applies to all poker winnings.

Whether less or more is withheld, you are still responsible for stating and paying all money won from betting when you submit your federal tax return.

Is the tax rate different for each type of gambling?

Since Nevada does not have a state income tax, the federal tax rate for all forms of legal online gaming is the same. The federal tax rate of 24% is imposed on the money won from playing online poker. For example, any amount over $5,000 in poker winnings triggers automatic withholding. Additionally, a W-2G form will be issued to yourself and the IRS. 

When it comes to other forms of legal online gambling, such as sports betting and horse racing, federal taxes will not be withheld. That said, you are still responsible for reporting any amount of gambling winnings from sports betting or horse racing to the Internal Revenue Service (IRS).

If you win more than $600 from sports or horse race betting, then you’ll need to complete Form 1099-MISC and submit it to the IRS.

Here’s a table outlining legal online gambling winnings in Nevada, plus federal tax rules:

Key points:

• All online gambling winnings are taxable, even those below reporting thresholds.
• W-2G = Issued when online poker winnings exceed $5,000 (casinos withhold 24%).
• 1099-MISC = Issued for sports betting, horse racing, or DFS winnings over $600 (no automatic withholding).
• Sweepstakes casinos do not involve real money, so no taxes apply.

How does your income affect taxes in Nevada?

Once again, since Nevada does not have a state income tax, your income level or earnings will not affect state taxes. That said, your income will affect your federal taxes. The higher your income, the more tax you are liable for.

Here are some examples of what your overall federal taxes will look like when combining your earnings with gambling winnings in Nevada. Note that Nevada works on a progressive federal tax percentage based on income bracket:

Example 1: Low-income earner ($30,000/year)

• Regular income: $30,000
• Gambling winnings: $5,000 (poker tournament)
• Total taxable income: $35,000
• Tax bracket: 12% (2024 IRS rates)
• Withholding on winnings: 24% ($1,200 withheld)
• Actual tax owed on winnings: 12% ($600)
• Tax refund: $600 (because more was withheld than owed)

Example 2: Middle-income earner ($75,000/year)

• Regular income: $75,000
• Gambling winnings: $10,000 (sports betting)
• Total taxable income: $85,000
• Tax bracket: 22%
• Withholding on winnings: None (sports betting isn’t withheld)
• Actual tax owed on winnings: 22% ($2,200)
• Tax due at filing: $2,200 (since nothing was withheld)

Example 3: High-income earner ($250,000/year)

• Regular income: $250,000
• Gambling winnings: $20,000 (poker tournament)
• Total taxable income: $270,000
• Tax bracket: 35%
• Withholding on winnings: 24% ($4,800 withheld)
• Actual tax owed on winnings: 35% ($7,000)
• Additional tax due: $2,200 (because 35% is higher than 24%)

How to pay gambling taxes in Nevada?

Thanks to the fact that Nevada does not have a state income tax, you’ll only need to report your gambling winnings to the IRS. Here’s what you need to do:

1. Report all gambling winnings

Start by reporting all gambling winnings to the IRS on Form 1040. In the event that you win more than $5,000 from poker or more than $600 from sports and horse race betting, you will receive a W-2G form as well.

2. Take note of when tax payments are due

Poker is the only legal form of online gaming in Nevada that triggers automatic withholding. For all other forms of online gambling, like sports betting, horse racing, and DFS, you need to submit your taxes on your own. Taxes are due quarterly, on April 15, June 15, September 15, and January 15.

3. Deduct gambling losses

One of the positives about paying federal taxes on gambling winnings in Nevada is that you can deduct gambling losses. You need to itemize your losses using Schedule A of Form 1040, and your losses cannot exceed your winnings. However, if you choose the standard deduction, you won’t be eligible for gambling loss refunds.

Tax breakdown for players in Nevada

Here’s a simple breakdown of gambling taxes for Nevada players:

Online casinos

• Not legal – No state-regulated online casinos in Nevada.
• Federal tax – 24% if winnings exceed $1,200 (if won from land-based casinos).
• State tax – No state income tax in Nevada.
• Tax forms – W-2G issued for winnings over $1,200.

Sports betting

• Federal tax – 24% if winnings exceed $600 or 300x the bet.
• State tax – No state income tax in Nevada.
• Tax forms – W-2G issued for winnings over $600.

Horse race betting

• Federal tax – 24% if winnings exceed $600 or 300x the bet.
• State tax – No state income tax in Nevada.
• Tax forms – W-2G issued for winnings over $600.
• Additional reporting – Winnings may be reported on Form 1099-MISC if over $600.

Poker tournaments

• Federal tax – 24% if net winnings exceed $5,000 (after entry fees).
• State tax – No state income tax in Nevada.
• Tax forms – W-2G issued for winnings over $5,000.

Nevada lottery

• State lottery – Nevada does not operate a state lottery.

What happens if you don’t report gambling winnings in Nevada?

Whether you’ve won from playing online poker, betting on sports, or horse races, rest assured that these gaming establishments report large winnings to the IRS. This means that whether or not you report your gambling winnings, the IRS is already aware.

If you fail to report any and all gaming winnings on your federal tax returns, the IRS can audit you and may fine you for possible tax fraud, which can lead to serious penalties. So, while Nevada does not have a state tax, and you are not liable for it, you are 100% liable for federal taxes.

Therefore, it’s in your best interest to keep track of and report all money won to avoid legal trouble.

Is online gambling legal in Nevada?

Is online gambling legal in Nevada? Online gambling NV only came into the scene in 2010, when sports betting apps were legalized. Online poker joined the party in 2013. However, online slot machines are still not regulated, meaning you’ll have to find a social casino if you want to play them.

There’s plenty to choose from other than gambling online in Las Vegas and Nevada. Knowing the ins and outs is important when making your choice. We’ve put together a table to give you an overview of the current situation related to the gambling laws in Nevada.

Online sports betting Legal since 2010

If you want to wager on your favorite sports team from the state of Nevada, you won’t need to leave the house. This form of online gambling has been legal since 2010 and is present at many legal sites. Nevada is one of the states that allow online sports betting.

Most major casino brands offer online sportsbooks in Nevada, and choosing one can be overwhelming, so we’ve narrowed it down for you by listing out top recommendations for online gambling in NV.

• Free bets and odds boosts
• More sports categories available
• Rewards and bonuses granted

• Smaller events are usually unavailable 

Social casinos The alternative to online casinos in Nevada

Is online gambling legal in Nevada for casino games? The situation is pretty much the same as for Maryland online gambling, which means not yet. But social and sweepstakes casinos are a fun alternative. These offer you the opportunity to play online casino Nevada games without staking real money. Social casinos are becoming more popular among gamblers in Nevada, which is why we’ve listed our favorite ones further down.

• Play online casino games for free
• Connect using any device
• Social media channels offer a community feeling

• Real money wins are not available
• Sports betting not available

Nevada online poker Legal since 2013

At the present moment, Word Series of Poker (WSOP) is the only online gambling site that is legalized to provide online poker to players in Nevada. WSOP launched in the 1970s with less than 50 poker tables in the whole of Las Vegas. It has since become the most well-known body for poker tournaments – both land-based and online.

If WSOP isn’t your thing, you can play video poker at social casinos and sweepstakes casinos in Nevada. These sites offer a platform for online gambling in NV without the need to spend real money, thus making it legal.

We recommend BetRivers.net as a great social casino to play Nevada online poker as the site offers a wide choice of table games. You’ll also have a wide choice of social video slots and other online casino games.

• Regular tournaments
• Multi-table games
• Unlimited poker action

• Only one US-licensed site

Other forms of gambling in Nevada

Online gambling in Nevada doesn’t stop at sports and social casinos. You’ll also be able to play other kinds of games online. We’ve put together the following information to give you an idea of what else is out there.

Las Vegas casinos and Nevada’s offline gambling hubs

Las Vegas online gambling may still be limited, but the same can’t be said for onsite gambling. Considered Nevada’s gambling hub, the sheer number off offline casinos present more than make up for the fact that you can’t do much on the lines of online gambling Las Vegas, unless you’re looking at sports wagering.

Sin City is definitely the place to be for anyone who enjoys a flutter. Will we ever see the full package in term of online gambling in Las Vegas? Who knows, but meantime the following table includes some of the most popular Las Vegas casinos.

Nevada online gambling and safety

Online gambling is legal in Nevada as long as it’s on sportsbook, poker, or DFS, and where you have online gambling, you have regulatory bodies. In Nevada’s case, the licensing body is the Nevada Gaming Control Board.

This Commission was created in 1959 and monitors all gambling within the state, including in Las Vegas, whether online or not. The Nevada Gaming Control Board is responsible for approving, revoking, conditioning, limiting, and/or restricting gaming licenses.

Having this stamp of approval doesn’t only make the online gambling site legal in Nevada, it also means that the sportsbook, poker games, or DFS games are fair.

When browsing through different online gambling NV sites, keep an eye out for these icons – each of them represents a reliable gambling body in Nevada.

Gambling in Nevada is taken for granted today. However, Las Vegas wasn’t always Sin City. Let’s take a step back in time and see how the Nevada gambling laws progressed with time.

FAQs

Sources:

• https://blog.turbotax.intuit.com/income-tax-by-state/nevada-105481/
• https://www.investopedia.com/ask/answers/taxes-on-vegas-gambling-winnings/
• https://www.irs.gov/pub/irs-tege/gaming_withholding_reporting_threshold.pdf
• https://turbotax.intuit.com/tax-tips/jobs-and-career/how-to-pay-taxes-on-gambling-winnings-and-losses/L7JNH7mjn
• https://lowerbuckstimes.com/gambling-winnings-tax/
• https://www.sdocpa.com/can-you-write-off-gambling-losses/