Are bingo winnings taxable in the U.S. is one of those questions most players don’t think about until after the adrenaline rush of shouting “Bingo!” has faded and the prize money hits their hands. The good news is yes, winning is thrilling. The bad news? The IRS noticed. Just like slot jackpots, lottery prizes, or poker tournament payouts, bingo winnings are considered taxable income under federal law. Whether you won fifty dollars at your local church fundraiser or fifty thousand at a high-stakes Las Vegas bingo tournament, Uncle Sam expects his share.
This guide breaks down exactly how bingo winnings are taxed, what reporting rules apply, how to handle state taxes, and whether you can deduct your losses to soften the blow.
Bingo Winnings and the IRS
Gambling Income Rules
The IRS classifies all bingo winnings as gambling income. No matter how small or large your win, you are legally required to report it on your tax return.
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Cash winnings: Every dollar won counts as taxable income.
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Non-cash prizes: Cars, trips, or merchandise must be reported at their fair market value.
When Do Casinos Withhold Taxes on Bingo Wins?
The $1,200 Threshold
Casinos and bingo halls are required to issue Form W-2G if your winnings reach $1,200 or more.
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At $1,200+, you’ll need to provide your Social Security number.
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Casinos may withhold 24% federal tax upfront.
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Smaller wins under $1,200 don’t trigger automatic reporting, but you’re still required to report them yourself.
State Taxes on Bingo Winnings
Federal vs. State Obligations
Federal reporting is only half the story. Your state may tax bingo winnings as well.
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Nevada: No state income tax—federal rules only.
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California, New York, Illinois: Require gambling winnings to be reported on your state return.
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Pennsylvania: Uses a flat tax, applying the same rate to all winnings.
Tip: Always check your state’s gaming and tax laws before cashing out.
Can You Deduct Bingo Losses?
Deduction Rules
Yes, but the IRS sets conditions:
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You must itemize deductions (the standard deduction won’t work).
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You must keep accurate records such as losing cards, receipts, or a logbook.
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Losses can’t exceed your winnings.
Example of Deductions
If you win $2,000 but lose $1,500 during the year, you can deduct $1,500. That reduces your taxable gambling income to $500.
Real-World Example: Vegas Bingo Jackpot Taxes
A High-Stakes Scenario
Let’s say you win $50,000 at a $200,000 bingo tournament in Las Vegas:
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The casino issues a W-2G form immediately.
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They withhold 24% federal tax upfront ($12,000).
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You leave with $38,000 in hand, but may still owe more at tax time depending on your bracket.
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If you lost $10,000 during other bingo games that year, you could deduct it. Your taxable winnings would then be reduced to $40,000.
Are Online Bingo Winnings Taxable?
Free-to-Play Apps
Apps like Bingo Blitz or Bingo Bash don’t involve real money, so winnings are not taxable.
Sweepstakes Bingo Sites
Sweepstakes apps like Pulsz or WOW Vegas award redeemable sweep coins or gift cards. These are taxable under the same rules as in-person bingo.
Real-Money Bingo Apps
Apps such as Blackout Bingo or Bingo Clash pay real cash. Winnings from these apps count as gambling income and must be reported—even if no W-2G is issued.
How to Report Bingo Winnings
Step-by-Step Reporting
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Use Form 1040 and list winnings as “Other Income.”
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Attach Form W-2G if issued.
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Keep complete records of wins and losses.
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Consider professional help if you had a large jackpot.
Tips for Bingo Players at Tax Time
Best Practices
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Track everything: Maintain a logbook.
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Save receipts: Buy-in slips, losing cards, daubers.
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Report honestly: Even small wins must be reported.
Hire a professional: A CPA can ensure proper deductions.
The Psychology of Bingo Taxes
Winning at bingo feels euphoric—until the tax reality sets in. But taxes are part of the game. Every jackpot photo you’ve ever seen has the IRS lurking in the background.
Recognizing this upfront makes winning more enjoyable. You know taxes are coming, and you plan accordingly, instead of being blindsided in April.
FAQs About Bingo Taxes
Do I owe taxes on $100 in bingo winnings?
Yes. All winnings, no matter how small, are taxable.
Will the casino always withhold taxes?
Only if your single win is $1,200 or more.
Can I deduct travel to bingo tournaments?
Not unless you’re a professional gambler. Recreational players can only deduct losses equal to winnings.
Are non-cash prizes taxable?
Yes. You must report the fair market value of non-cash prizes.
The safest approach is to treat bingo like any other gambling activity: enjoy the thrill, but plan ahead for taxes. With good recordkeeping and honest reporting, you can celebrate your wins without dreading tax season.
Knowledge is power, and now you know how taxes shape the reality of bingo winnings in the U.S.
From Vegas With Luck
-The Bingo Ballers
Disclaimer: This article is intended for informational purposes only and does not constitute legal, financial, or tax advice. Tax laws vary by state and are subject to change. Always consult with a qualified tax professional or accountant to understand how gambling winnings and losses apply to your specific situation.
