Everything Florida online casino players need to know about W-2G tax forms, federal withholding, and reporting offshore winnings on Schedule 1.
IRS Form W-2G is the 'Certain Gambling Winnings' form. US-licensed casinos issue it when a single payout exceeds: $1,200 on slots / bingo; $5,000 in a poker tournament; $1,500 net on keno; $600+ and 300× the wager on other casino games. The standard federal withholding rate on reportable winnings is 24%.
Florida is one of nine US states with no state income tax, making it unusually tax-friendly for gamblers. NJ residents owe ~10.75% state tax on winnings on top of federal; PA and NY are similar. A Florida resident with the same $10,000 jackpot keeps significantly more after-tax.
No — offshore casinos like Bovada, Ignition, BetOnline are not US payors and have no W-2G obligation. You are responsible for self-reporting on Schedule 1 (Additional Income), Form 1040. Treat your offshore winnings exactly like any other ordinary income.
Yes, if you itemise. Gambling losses are deductible on Schedule A up to the amount of your reported gambling winnings. You must keep records (deposit receipts, withdrawal records, casino transaction history). A casual player who takes the standard deduction cannot deduct losses.
Track every deposit, every withdrawal, and every transaction the casino sends you (deposit confirmations, cashout emails, bonus terms screenshots). Most casinos provide a downloadable transaction history. Save it monthly. The IRS standard is 'contemporaneous records' — kept at the time, not reconstructed later.
No. Florida has no state income tax. Federal tax applies only.
Gambling winnings are ordinary income, taxed at your marginal federal rate (10–37%). The 24% withholding rate is a flat backup-withholding rate, not your actual rate.
No. The IRS treats gambling winnings as ordinary income regardless of whether you receive USD, Bitcoin, or Ethereum. Report fair market value at the time of withdrawal.