The Record-Keeping Requirements for Gambling Activity Reports

The IRS has always required gamblers to maintain records of their gambling activity. Under the new 90 percent rule, the stakes of inadequate records are substantially higher if you cannot document your losses, you cannot claim the deduction at all, meaning the full amount of your winnings is taxable.

 

The IRS specifies in Publication 529 what records are required for different types of gambling. The general standard applies to all types: you should maintain a diary or log that records the date and type of each gambling session, the name and location of the gambling establishment, the people with you (if any), and the amounts you won or lost.

 

For slot machines, records should include the machine number where possible, the amount played and won or lost per session, and any player loyalty card statements from the casino. Most major casinos provide win/loss statements to players who use a loyalty card- request one annually. These statements summarise your net activity for the year and, while not definitive proof that satisfies the IRS alone, substantially support your deduction claims.

 

For table games including blackjack, roulette, craps, and baccarat, records should note the table number, the amount of chips purchased, and the amount taken from the table at the end of each session. Casino credit records, chip purchase receipts, and player card statements all serve as supporting documentation.

 

For sports betting, all betting slips, tickets, records from online sportsbook accounts, and transaction histories should be retained. Most major licensed sportsbooks including DraftKings, FanDuel, and BetMGM provide downloadable transaction histories from your account. Download these annually and retain them.

 

For poker tournaments, retain the tournament buy-in receipts, registration records, and any official placement results. Tournament operators typically issue documentation. Keep all of it.

 

For online casino play, retain screenshots or downloads of your transaction history from every platform you used. Most licensed online casinos provide a complete history of deposits, withdrawals, and game activity in your account settings.

 

The practical advice is simple: at the end of every gambling session, record what you won or lost in a note on your phone, a spreadsheet, or a dedicated gambling log. Five minutes after every session is all it takes. Trying to reconstruct a year's worth of gambling activity from memory in March of the following year is both inaccurate and an IRS audit risk.