Every dollar you win betting sports in Louisiana is taxable income. That applies whether or not the sportsbook sends you a form. Here is what the rules actually say and what you need to do at tax time.
When does a sportsbook send a W-2G form?
Federal law requires sportsbooks to issue an IRS Form W-2G when a single winning exceeds $600 or is more than 300 times the amount wagered. At that threshold, federal withholding at 24% may also be deducted before you receive your payout. Smaller wins are still taxable — the sportsbook just does not automatically report them. You are responsible for tracking and reporting every winning bet.
How does Louisiana state withholding work?
Louisiana operators withhold state income tax at the highest applicable rate under R.S. 47:32(A) whenever the IRS also requires withholding on the same winning. In plain terms: if a payout triggers the federal W-2G threshold, the sportsbook withholds both federal and state tax at once. You report both on your federal and Louisiana state returns for that year.
Can I deduct gambling losses in Louisiana?
Yes, but only under two strict conditions. You must itemize deductions on Schedule A — the standard deduction cannot be combined with a loss deduction. And losses can only offset gambling winnings, dollar for dollar. They cannot reduce your wages, investment income, or any other income. Keep detailed records: date, amount wagered, and outcome for every bet.
What tax rate do operators pay?
HB 639 (2025) raised the Louisiana online sports betting operator tax rate from 15% to 21.5%. That is the tax on the operator's revenue, not your winnings — but it is worth knowing when you read revenue and handle figures for the state.
How do federal and state rules compare at a glance?
| Rule | Federal (IRS) | Louisiana State |
|---|---|---|
| Form issued | W-2G above $600 or 300× stake | No separate state form; operators use W-2G data |
| Withholding rate | 24% when withholding applies | Highest applicable state rate per R.S. 47:32(A) |
| Loss deduction | Schedule A, itemizers only, capped at winnings | Follows federal treatment; losses cannot offset other income |
| Operator tax rate | N/A | 21.5% on gross gaming revenue (HB 639, 2025) |
| Reporting obligation | All winnings, regardless of W-2G issuance | All winnings taxable; must be reported to Louisiana Department of Revenue |
What records should I keep?
Log every bet: the date, the sportsbook, the amount wagered, and the result. A simple spreadsheet works. Your app's bet history is a useful backup, but operators can restrict access to older records — do not rely on it as your only documentation. The IRS cross-references W-2G forms against filed returns, so gaps get noticed.
Does this apply to all Louisiana sportsbooks?
Yes. All eight licensed operators — including those covered in our FanDuel Louisiana Review: $350 Bonus Bet Offer Tested — operate under the same withholding rules. For a broader look at who is licensed and legal, see Louisiana Sportsbook Apps: Ranked by Real Criteria. Common questions about legality and filing obligations are covered in the Louisiana Sports Betting FAQ: Your Legal and Practical Questions Answered. For details on how we evaluate operators and sources, visit About This Site: How We Rank Louisiana Sportsbooks.
Tax rules apply only in parishes where sports betting is legal. If you are located in one of the nine no-vote parishes, you cannot legally place a bet in the first place. 21+ only. Gambling problem? Call 1-800-GAMBLER.