Gambling Tracker How to prove gambling losses to the IRS
Two rules do most of the work. You can only deduct losses if you itemise, and only up to what you won. Everything after that is a question of whether your records hold up, and the statement your casino sends you in January is not the record.
What the IRS asks for
Publication 529 says your diary of winnings and losses should contain at least these four things. It is a short list, and the third item is the one nobody has.
| Required in the diary | In practice |
|---|---|
| The date and type of the wager | Not just "blackjack". The date, and what you were actually playing. |
| The name and address or location of the establishment | The venue, not the city. Online counts, and so does the site. |
| The names of other people present with you | The item almost nobody records, and the one an auditor can check. |
| The amounts you won or lost | Listed separately. This is the rule people break without noticing. |
The rule people break without noticing
Your records have to show winnings separately from losses. You cannot subtract one from the other and report the difference. Somebody who won 20,000 across the year and lost 20,000 does not report zero. They report 20,000 of income and then claim a deduction, which is a different tax outcome and the entire reason the distinction exists.
Why the casino statement is not the record
Request one anyway. It is free and it corroborates part of your year. Just be clear about what it is, because the operators themselves are.
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It only sees carded play
The statement is built from what you played with the player card inserted or the account logged in. Cash at a table without handing over the card, a machine that does not read it, a home game, a private poker room: none of it appears. Royal Caribbean's own page says its statement excludes Texas Hold'em and machines that do not accept the SeaPass card.
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The operator says it is not a tax document
Royal Caribbean states that a win/loss statement is not an official tax document and is not submitted to the IRS. FanDuel calls its version a Player Activity Statement and says the same thing. They are describing a convenience summary, not evidence prepared to a standard.
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It is one venue, and it expires
You need one statement per operator, and each one covers a different window. Your own diary covers everywhere you played, in one place, for as long as you keep it.
How to get a win/loss statement from your casino or sportsbook
What changes in 2026
The One Big Beautiful Bill Act, signed in July 2025, amended section 165(d) of the tax code. From tax year 2026, only 90 percent of losses are deductible, still capped at winnings.
Before 2026
Won 50,000, lost 50,000, itemised: deduct the full 50,000. Taxable gambling income for the year, zero.
From 2026
Same year, same numbers: deduct 45,000. You are taxed on 5,000 you never kept. The industry calls it phantom income and the name is fair.
Who it hits
Recreational and professional alike, and hardest the high-volume break-even player. The Fair Bet Act would restore the full 100 percent. It has not passed.
One consequence is worth stating plainly: the worse the deduction gets, the more it matters that the losses you do claim are documented properly, because a smaller allowance is a smaller cushion for a record that does not hold up.
What to keep alongside the diary
The diary is the spine. These corroborate it, and the IRS names most of them directly.
| W-2G forms | Issued by the operator above certain thresholds. The IRS already has a copy. |
| The casino win/loss statement | Corroboration for the carded part of your play. Not the record itself. |
| Wagering tickets and receipts | Physical stubs, cash-out tickets, tournament buy-in receipts. |
| Bank and ATM records | Withdrawals at the venue on the date in your diary line up with the diary. |
| Payment and wallet history | For online play, the deposit and withdrawal ledger inside the account. |
Doing it with this app
The app is a session diary, so it lines up with the list above. Being specific about what it does and does not cover is more useful than a sales pitch.
What it records for you
- ✓Date and game, on every session
- ✓Venue, including online, home games and lottery
- ✓Buy-in and cash-out as separate figures, not a net
- ✓Hours played, which is what an hourly rate needs
What you still have to do
- →Put the names of the people with you in the session notes. No app fills that in for you.
- →Log the session the day it happens. A diary reconstructed in April is worth much less than one written as you go.
- →Request the operator statements anyway and keep them with the year.
Questions
Can I just report the net number?
No, and this is the most common mistake. The IRS is explicit that your records must show winnings separately from losses, and that you cannot reduce your winnings by your losses and report the difference. Winnings go in income, losses go on Schedule A as an itemised deduction. A player who won 20,000 and lost 20,000 does not report zero. They report 20,000 of income and claim a deduction, which is a very different tax outcome and the reason the distinction exists.
Is a casino win/loss statement enough by itself?
Generally not, and the operators say so themselves. Royal Caribbean's own page states that a win/loss statement is not an official tax document and is not submitted to the IRS. FanDuel calls its version a Player Activity Statement and says plainly that it is not a tax document. They are useful corroboration for the part of your play that was tracked, which is why you should still request one. They are not a substitute for your own diary.
What is the 90 percent rule for 2026?
The One Big Beautiful Bill Act, signed in July 2025, amended Internal Revenue Code section 165(d). From tax year 2026 you can deduct only 90 percent of your gambling losses, still capped at your winnings. The practical effect is that a player who breaks even is taxed on 10 percent of their winnings. It applies to recreational and professional gamblers alike. The Fair Bet Act, introduced by Representative Dina Titus, would restore the full 100 percent, but it has not passed.
Do I need to itemise?
Yes. Gambling losses are an itemised deduction on Schedule A. If you take the standard deduction you get no benefit from your losses at all, while your winnings are still taxable income. For a lot of recreational players the standard deduction is larger than everything they could itemise, which means the diary changes nothing about their tax bill. It still tells them what the year actually cost, which is the other reason to keep one.
How far back should I keep records?
The general IRS guidance is three years from the date you filed, and longer in some situations. Operator statements are usually available for a shorter window than that. Royal Caribbean holds five years, DraftKings typically the current and previous year. That gap is the argument for keeping your own copy: the casino's record has an expiry date and yours does not.
Sources: IRS Topic no. 419 (Gambling income and losses) and Publication 529 for the diary requirements, and the text of the One Big Beautiful Bill Act for the 2026 change. This page describes the rules. It is not tax advice, and a preparer who knows your return is worth the fee.
The diary only works if you keep it
Six fields, filled in while you still remember. That is the whole discipline, and it is the difference between a deduction you can defend and a number you are hoping nobody checks.
