Can you deduct gambling losses on your taxes? Itemizing, the 90% rule from 2026 and the records crypto casinos keep
Can you deduct gambling losses?
US players can deduct gambling losses only by itemizing on Schedule A, and only up to the winnings they report. From tax year 2026 the deduction is 90% of losses. The IRS requires a diary plus statements; of three crypto casino terms read, none promises a statement, and two make their own logs final.
Piece published Reviewed by CryptoGuardz Register Desk, editorial desk
You can deduct gambling losses on your US taxes only if you itemize on Schedule A, and only up to the gambling winnings you report. From tax year 2026 a third limit applies: the deduction is 90% of losses, not 100%. With a 2026 standard deduction of US$16,100 for a single filer, a player whose losses and other deductions together stay under that figure gets no benefit from the losses at all.
The IRS also wants proof, session by session. For a crypto casino player that proof has to be assembled from the operator's account history and the blockchain, because offshore casinos issue no tax forms. This page reads the IRS texts and three crypto casinos' terms; it is not tax advice.
Can you claim gambling losses on your taxes?
Yes, under two conditions the IRS states in Topic 419:
You may deduct gambling losses only if you itemize your deductions on Schedule A (Form 1040)
The second: "The amount of losses you deduct can't be more than the amount of gambling income you reported on your return." Losses are claimed as "Other Itemized Deductions". Publication 529 adds that winnings and losses are reported separately; a player cannot subtract losses from winnings and enter only the net figure. Topic 419 also says that, generally, nonresident aliens who are not residents of Canada cannot deduct gambling losses.
The deduction cannot create a tax loss. A player who won US$2,000 and lost US$20,000 deducts at most the US$2,000, and the other US$18,000 is gone for tax purposes. Nothing in the texts read allows it to be carried to another year.
Does itemizing make sense for a gambler?
Only when itemized deductions in total beat the standard deduction. For 2026, IRS release IR-2025-103 sets it at US$16,100 for single filers and US$32,200 for married couples filing jointly. Gambling losses count toward the itemized total, but so does everything else on Schedule A.
Arithmetic on the 2026 figures for a single filer with US$10,000 of winnings:
| Losses | Deductible at 90% | Other itemized deductions | Itemized total | Better choice | Gambling income taxed |
|---|---|---|---|---|---|
| US$10,000 | US$9,000 | US$3,000 | US$12,000 | Standard, US$16,100 | US$10,000 |
| US$10,000 | US$9,000 | US$9,000 | US$18,000 | Itemize | US$1,000 |
| US$6,000 | US$5,400 | US$12,000 | US$17,400 | Itemize | US$4,600 |
In the first row the player broke even and still has US$10,000 of winnings in taxable income, because taking the standard deduction means the losses are never claimed. The standard deduction is then reducing other income, as it would have anyway. That is how a break-even year produces a tax bill even before the 2026 change.
What changed for gambling losses in 2026?
The 90% cap. Section 70114 of Public Law 119-21, enacted in 2025, rewrote section 165(d) of the Internal Revenue Code so that the deduction for a taxable year "shall be equal to 90 percent of the amount of such losses during such taxable year" and "shall be allowed only to the extent of the gains from such transactions during such taxable year." Section 70114(b) applies it "to taxable years beginning after December 31, 2025."
The IRS and Treasury proposed regulation section 1.165-10 in April 2026 under REG-113229-25, allowing a deduction "for 90 percent of the amount of such losses during the taxable year", with the same limits applied to spouses' combined figures on a joint return. A search on 9 October 2026 found no final version: not verified.
The cap bites when losses are below about 111% of winnings. A player with US$50,000 of winnings and US$50,000 of losses deducts US$45,000 and pays tax on US$5,000. The full working, with the W-2G thresholds that also changed for 2026, is in how gambling winnings are taxed in the US.
What records does the IRS require for gambling losses?
A diary plus documents. Topic 419:
you must keep an accurate diary or similar record of your gambling winnings and losses and be able to provide receipts, tickets, statements, or other records that show the amount of both your winnings and losses.
Publication 529, in its December 2020 revision, gives the diary's fields:
| Diary field the IRS lists | What a crypto casino player can use |
|---|---|
| Date and type of each wager or activity | Account bet history, exported or screenshotted |
| Name and address or location of the establishment | Operator name, domain and the company named in its terms |
| Names of other persons present | Not applicable online in most cases |
| Amounts won or lost | Bet history plus deposit and withdrawal records |
For supporting documents, Publication 529 points to items such as Form W-2G, wagering tickets, canceled checks, credit records, bank withdrawals and statements of actual winnings or payment slips from the establishment. Most of those assume a cashier's desk. An offshore crypto casino issues none of them.
What do crypto casino terms say about statements and records?
None of the three read for this piece promises a statement. Two make their own logs the final word. The terms of Stake, Cloudbet and Bitcasino were read on 9 October 2026:
| Operator | Bet history available? | Whose record wins a dispute? | Taxes on winnings |
|---|---|---|---|
| Stake | "check Your account history" (11.2) | "Stake transaction log database" (11.3) | No clause found |
| Cloudbet | "available to you on the Website" (10.9) | Logs "certified by an officer of Cloudbet" (10.25) | "your sole responsibility" (7.5.6) |
| Bitcasino | No clause found | Logs "verified by an officer of the Website" (11.12) | Player "solely responsible" (2.1.8) |
Stake's clause 11.3 is the plainest:
Should a dispute arise regarding the content of a bet, You and Stake agree that the Stake transaction log database of its internal control system will be the ultimate authority in such matters.
That clause governs disputes with Stake, not with the IRS, but it tells a player where the authoritative record lives: on the operator's server. If the account is closed, the history goes with it unless the player saved it. Bitcasino's clause 15.5 says no data is destroyed "unless required by law, or unless the information held is no longer required", which commits to no retention period. Cloudbet's terms contain no dedicated clause on statements or a fixed retention period.
The blockchain is the record a player controls. Deposits and withdrawals to and from a casino address are public, timestamped and permanent. The IRS virtual currency FAQs say fair market value for transactions off an exchange "is determined as of the date and time the transaction is recorded on the distributed ledger", and that taxpayers must keep "records documenting receipts, sales, exchanges, or other dispositions of virtual currency." Those FAQs generally cover transactions before 1 January 2025. On-chain records show money in and out; they do not show individual bets, so the diary still has to come from the casino's history.
Can a US player at an offshore crypto casino rely on its records?
Only as far as the account survives. Of 24 operators in the CryptoGuardz register, 21 list the United States as a restricted territory in their terms; Jackbit does not, and two have no verified list. A US player at one of the 21 is in breach of terms, and the register records what those terms allow on detection in the VPN clause watch and in failed KYC confiscation clauses. An account closed for that reason takes its bet history offline. The tax obligation on any winnings stays.
What this does not show
Whether any operator supplies a statement on request is not measured. The three operators were chosen because their terms load as plain text; the other 21 were not read for this question: not measured. State tax rules on gambling losses are not covered. Whether the proposed regulations are final is not verified. Publication 529 is the December 2020 revision, the version the IRS served on 9 October 2026.
Quick answers
Can you claim gambling losses on your taxes?
Yes, if you itemize on Schedule A, up to the winnings you report. From tax year 2026 only 90% of losses count. Details in how winnings are taxed.
Do you need to itemize to deduct gambling losses?
Yes. Topic 419 allows the deduction "only if you itemize". With a 2026 standard deduction of US$16,100 for single filers, itemizing helps only if all itemized deductions together exceed that.
What records do you need for gambling losses?
A diary of date, type of wager, establishment and amounts won or lost, plus statements or other records. For crypto casinos, the account bet history and on-chain transactions. The casino register names the company behind each operator.
Do crypto casinos send tax statements?
None of the three terms read promises one. Cloudbet says bet details are "available to you on the Website"; Stake points to "Your account history".
Where can I get help with gambling in the US?
The National Problem Gambling Helpline is 1-800-MY-RESET, by call or text, with online chat on the NCPG site. More options are on the responsible gambling page.
Sources
- IRS Topic no. 419, Gambling income and losses, retrieved 9 October 2026
- IRS Publication 529, Miscellaneous Deductions, revised December 2020, retrieved 9 October 2026
- 26 U.S.C. 165(d) as amended by Pub. L. 119-21, section 70114, via Cornell LII, retrieved 9 October 2026
- IRS and Treasury, REG-113229-25, notice of proposed rulemaking, FR Doc. 2026-07519, for publication 17 April 2026, retrieved 9 October 2026
- IRS, IR-2025-103, tax inflation adjustments for tax year 2026, 9 October 2025, retrieved 9 October 2026
- IRS, Frequently asked questions on virtual currency transactions, retrieved 9 October 2026
- Stake terms and conditions, retrieved 9 October 2026
- Cloudbet terms and conditions, retrieved 9 October 2026
- Bitcasino terms and conditions of use, retrieved 9 October 2026
- CryptoGuardz casino register, restricted countries per operator, retrieved 2 September to 2 October 2026
- National Council on Problem Gambling, help and treatment, retrieved 9 October 2026
About this piece
Compiled by the CryptoGuardz register team from the sources listed above. Research and drafting are AI-assisted and reviewed by a named editor before publication. Nothing here is a recommendation to gamble. If a figure or a reading is wrong, tell us and the correction is logged in public.