Instead the IRS prefers, yes insists, that gamblers keep a gambling diary (See Revenue Procedure 77-29) and report their activity by “ gambling session” (See IRS Chief Counsel Advice Memorandum 2008-011 for more information).įor example, if a gambler has a $10,000 winning gambling session followed by a losing gambling session of $9,900, the gambler is not allowed to merely report the difference of $100. The Courts and the IRS have interpreted Section 165(d) of the Internal Revenue Code in such a way that gambling activities cannot be reported in a summary fashion.

As a result, the IRS does not regulate the format or time of delivery of casino win/loss statements.įor more specific information regarding a particular casino win/loss statement, please contact the casino or a qualified tax professional.The IRS hates casino win/loss statements for two main reasons – one legal and the other practical.įirst of all, the IRS has the proper legal authority to disallow the usage of most casino win/loss statements. It is important to remember that casino win/loss statements are not “official” IRS forms like Form W-2G Certain Gambling Winnings or Form 5754 Statement by Person(s) Receiving Gambling Winnings. However, what many gamblers don’t realize is that casino win/loss statement can actually cause a gambler to pay more income tax.įurthermore, the “disclaimer” language which states that that information contained in the casino win/loss statement is not reliable or accurate causes both the IRS and gamblers much consternation, confusion and aggravation. In general, many gamblers prefer to use casino win/loss statements because they are easily obtained from the casino. As an alternative, the IRS recommends that a gambler use a gambling diary or log to record their transactions by gambling session.

Typically, such reports total the gambler’s activity by year, activity, and location.įrequently, the IRS refuses to accept a casino’s win/loss statement as evidence of a gambler’s losses. A casino win/loss statement is a report or letter from a casino that summarizes a person’s gambling activity.

Jamul casino win loss statement