DraftKings and FanDuel Tax Guide for NJ: How to Report Your Sports Betting Income in 2026

Quick Answer: Sports-betting winnings remain reportable under the applicable federal and New Jersey rules whether or not a form is furnished. A casual or nonprofessional bettor generally reports federal gambling income on Form 1040, Schedule 1, line 8b, and claims otherwise-allowable wagering losses on Schedule A only when itemizing; a taxpayer whose wagering activity qualifies as a trade or business applies the applicable Schedule C rules. For tax years beginning after 2025, Section 165(d) takes into account 90% of the combined otherwise-allowable wagering losses and covered expenses, and the deduction cannot exceed wagering gains. New Jersey separately reconciles supported same-year winnings and losses owned by the same taxpayer, reported on the same return under the adopted reporting units within the applicable gambling-income category, with a zero floor, no cross-category offset, and no carryforward. The complete federal and NJ returns determine liability.

🚨 The 2026 OBBBA federal-loss-cap change:

For tax years beginning after December 31, 2025, IRC Section 165(d) takes into account 90% of the combined amount of otherwise-allowable wagering losses and covered expenses, and the deduction cannot exceed wagering gains. A break-even bettor with $20,000 in wins, $20,000 in otherwise-allowable losses, and no separate covered expenses who claims the deduction - itemizing on Schedule A as a casual bettor or applying the applicable Schedule C rules for a qualifying wagering trade or business - is left with $2,000 after the federal deduction. Whether that amount produces additional tax depends on the complete return. A casual bettor taking the standard deduction gets no Schedule A loss offset, which the cap does not change. NJ did not adopt the cap: supported same-year losses owned by the same taxpayer can offset winnings reported on the same return under the adopted reporting units within the applicable gambling-income category, with a zero floor, no cross-category offset, and no carryforward. Under those stated assumptions, the NJ gambling-category amount is zero; the complete NJ return determines total state liability.

Federal law-status checkpoint (as of October 1, 2026): The 90% limitation above is current law. On September 16, 2026 the House Ways and Means Committee ordered H.R. 10357 reported; its Title VII would remove the 90% limitation for tax years beginning after December 31, 2025. It is not law, and current law still applies; verify again before filing a 2026 return.

W-2G threshold note: For a 2026 sports wager or parimutuel wager, the payment must be $2,000 or more and the proceeds (payment minus the wager) at least 300 times the wager. The 2025 payment floor was $600; the 300-times proceeds test is unchanged. Regular withholding uses the same proceeds, which must also exceed $5,000. Slots and bingo use a $2,000 payment threshold without wager reduction, and keno uses $2,000 after wager reduction. Apply the applicable tests to each wager or group of identical wagers under the current instructions and the payer's actual records; every dollar of winnings remains taxable regardless of form issuance.

In This Article

1. The 2026 OBBBA Changes for NJ Sports-Betting Reporting
2. Step 1: Download Your Year-End Tax Statements
3. Step 2: Understand What Forms You Might Receive
4. Step 3: Calculate Your Numbers
5. Step 4: Report on Your Federal Return
6. Step 5: Report on Your NJ-1040
7. Worked Examples: Federal vs. NJ Tax in 2026
8. Worked Example: Multi-Platform NJ Bettor Filing 2025 Return
9. Which Tax Situations Require Separate Analysis for NJ Sports Bettors?
10. Which Records Support Sports Betting Tax Reporting?
11. Estimated Tax Payments for NJ Gamblers
12. Where Do I Find My Year-End Tax Statements from DraftKings and FanDuel?
13. Other Operator Records and Product Differences
14. Prediction Markets
15. Platform Availability Restrictions and Transitions
16. Quick-Reference Comparison Table
17. What If I Didn't Receive a Form I Expected?
18. When Additional Reconciliation May Be Needed
19. Key Takeaway
20. Frequently Asked Questions
21. Requesting a Sports-Betting Reporting Scope

The 2026 OBBBA Changes for NJ Sports-Betting Reporting

The One Big Beautiful Bill Act (P.L. 119-21, signed July 2025) made two structural changes relevant to gambling reporting for tax years beginning after December 31, 2025:

Practical example: A $5 parlay returns a $2,505 gross payment, so its net proceeds are $2,500. The stated payment clears the 2026 $2,000 reporting floor and the 300-times test uses the proceeds: $2,500 / $5 = 500x. The separate regular-withholding test also uses the proceeds, and $2,500 does not exceed $5,000. Reconcile the payer's actual form and withholding with the wager record; the $2,500 net win remains taxable. Withholding and reporting are not the same thing.

Records That May Be Relevant

• Available year-end tax or activity statements from each sportsbook used
• Any W-2G forms received
• An accurate diary or similar record of winnings and losses, plus supporting records such as tickets, statements, and payment records
• A prior-year tax return, when relevant to the current computation or reconciliation
• Deposit/withdrawal records from gambling accounts

Winnings from a NJ-licensed sportsbook remain reportable income under the applicable federal and NJ rules, whether the activity occurred through DraftKings, FanDuel, BetMGM, Caesars, Fanatics (formerly PointsBet), bet365, or another operator.

Sports-betting reporting requires the taxpayer's complete wager records, any forms actually furnished, and separate federal and New Jersey computations under the applicable rules.

Greg Monaco is a NJ-licensed CPA who prepares tax returns for sports bettors as part of the tax preparation services. This guide explains the reporting and reconciliation mechanics.

Step 1: Download Your Year-End Tax Statements

A sportsbook account may provide a year-end tax summary or activity statement, but the document's name, contents, and availability vary by platform and period. Verify the signed-in account and current help instructions, then reconcile any statement with the complete wager and transaction ledger.

Log into each sportsbook used for the relevant tax year and download the available statements. Check the "Tax Information," "Account," or "Documents" section of your account settings.

If you used multiple platforms, reconcile the records from each account. The return must account for the taxpayer's complete activity rather than a single platform total.

Platforms such as DraftKings, FanDuel, BetMGM, Caesars Sportsbook, Fanatics (formerly PointsBet), and bet365 may use different navigation and document labels. Verify the current help page and signed-in account, and distinguish an information return from a consolidated activity statement.

Step 2: Understand What Forms You Might Receive

Form W-2G

Sportsbooks must issue a W-2G for a qualifying wager or combined group of identical wagers when two reporting tests are met. Under the current instructions, wagers are identical when they are placed with the same payer and winning depends on the occurrence or non-occurrence of the same event or events; the payer adds winnings from those wagers before applying the reporting and withholding tests. After that required aggregation, the payment must meet the dollar floor: $600 for 2025 or $2,000 for 2026. The proceeds (payment minus the wager) must be at least 300 times the wager. Subtract the wager for the 300-times test only; neither the platform nor the bet label predicts form issuance.

After applying the current identical-wager aggregation rule, federal withholding of 24% generally applies to sports and parimutuel wagers when the proceeds (winnings minus the wager) exceed $5,000 and are at least 300 times the wager. The payer withholds 24% of the proceeds (winnings minus wager). If federal tax was withheld, it appears on the W-2G and is credited on your tax return.

Slots, keno, bingo and poker tournaments reported on a W-2G get no regular withholding. Backup withholding, also 24%, applies only when all three conditions are met: you do not furnish a correct SSN/TIN, regular withholding does not apply, and the win is reportable on Form W-2G (it meets the dollar floor and, where it applies, the 300-times test).

• Withholding: Report W-2G federal tax withheld (Box 4) on Form 1040, Line 25c ("other forms"); Line 25d is the auto-summed total of 25a-25c

For 2026, the W-2G reporting threshold structure is: slots/bingo payments of $2,000 or more without wager reduction; keno winnings of $2,000 or more after wager reduction; sports-betting and parimutuel payments of $2,000 or more whose proceeds (payment minus the wager) are at least 300 times the wager; and poker-tournament winnings of $2,000 or more, net of buy-in (the prior poker rule was more than $5,000 net through 2025). Every dollar of gambling winnings remains reportable whether or not a form is issued.

Form 1099-MISC, which reports prizes and awards that do not involve a wager (box 3), also uses a $2,000 threshold for 2026 payments ($600 for 2025). If you collect winnings for someone else or share a winning ticket or wager, give the payer Form 5754 so it issues a separate W-2G to each actual winner. Source: January 2026 IRS Instructions for Forms W-2G and 5754; Instructions for Forms 1099-MISC and 1099-NEC; Pub. 1099 (2026).

Other forms you might receive

You may receive a W-2G for certain individual wager wins. Some platforms may also issue 1099 forms for promotional prizes or other non-wager payouts. A gambling withdrawal or transfer of your own balance does not itself trigger Form 1099-K; payment apps issue that form for covered goods-or-services settlement transactions when applicable. Regardless of which forms you receive - or don't - you must report all gambling winnings.

No form doesn't mean no tax. A payer must furnish a form when the applicable reporting rules require it and may also report voluntarily below a threshold; form issuance does not determine taxability. The IRS requires all gambling winnings to be reported regardless of whether a form was furnished. (IRS Topic 419 (opens in a new tab))

Step 3: Calculate Your Numbers

For federal purposes, reconcile reportable gambling income and any otherwise-allowable wagering losses or covered expenses under the taxpayer's adopted, supportable reporting units and activity classification.

Total winnings requires the complete wager-level records, not only amounts reported on Forms W-2G. A year-end platform statement may help, but its availability, scope, and definitions must be verified and reconciled.

Total losses likewise requires supported wager-level records. Reconcile any platform statement to deposits, withdrawals, wagers, settlements, and account history rather than treating it as complete by default.

If you used multiple sportsbooks, reconcile every platform's ledger and actual information returns before aggregating supported amounts. A platform's annual display or net-result label does not establish the federal reporting unit, gross-income amount, or deductible amount.

For New Jersey, reconcile supported same-year winnings and losses owned by the same taxpayer, reported on the same return under the adopted reporting units within the applicable gambling-income category. A positive category result is reported under the current NJ-1040 instructions; a negative category result stops at zero, with no cross-category offset or carryforward. (NJ Division of Taxation - Gambling Winnings (opens in a new tab))

Step 4: Report on Your Federal Return

Casual or nonprofessional bettor: Report gambling income under the current Form 1040 and Schedule 1 instructions (generally Schedule 1, line 8b) using the adopted reporting units and supported records.

Casual-bettor loss deduction: Claim otherwise-allowable wagering losses on Schedule A (line 16 on 2025 forms; line 17a on the 2026 draft) only when itemizing. A taxpayer whose wagering activity qualifies as a trade or business instead applies the applicable Schedule C rules; classification is facts-specific, and neither route bypasses Section 165(d).

Key distinction between 2025 and post-2025 tax years: Under the prior rule, otherwise-allowable covered amounts remained subject to the wagering-gain ceiling. For tax years beginning after 2025, Section 165(d) takes into account 90% of the combined otherwise-allowable wagering losses and covered expenses, and the deduction remains capped at wagering gains. Read the full explanation of the 90% cap

If a casual or nonprofessional bettor takes the standard deduction ($15,750 single / $31,500 MFJ for tax year 2025; $16,100 / $32,200 for tax year 2026) instead of itemizing, there is no separate federal Schedule A wagering-loss deduction. Report supported gambling income under the adopted reporting units rather than treating a form's gross payment as the transaction unit. For TY2025, the SALT maximum is $40,000 for non-MFS returns and $20,000 for MFS, phases down above $500,000 and $250,000 of modified AGI, respectively, and cannot fall below $10,000 and $5,000. For TY2026, the indexed maximum is $40,400 for non-MFS returns and $20,200 for MFS, phases down above $505,000 and $252,500, and has the same $10,000 and $5,000 floors. The statutory formula controls. The complete return, substantiated losses, filing status, MAGI, and allowable itemized deductions determine the comparison.

For higher-volume activity, a supporting statement that reconciles total winnings and losses by platform can document the amounts reported. Whether and how to attach one depends on the return, records, and current instructions.

Step 5: Report on Your NJ-1040

New Jersey uses a separate gambling-income-category computation. Reconcile supported same-year winnings and losses owned by the same taxpayer, reported on the same return under the adopted reporting units within the applicable category, and report the nonnegative category result under the current NJ-1040 "Net Gambling Winnings" instructions.

A positive gambling-category amount enters the complete NJ return. Filing status, other income categories, deductions, exclusions, credits, withholding, and the graduated rate schedule determine total NJ liability; the category amount alone does not establish tax due.

NJ difference for 2026: New Jersey did not adopt the federal 90% limitation. Under the same-taxpayer, same-return, same-year, adopted-reporting-unit, and category assumptions, supported losses can offset winnings to a zero category floor, with no cross-category offset or carryforward. A stated break-even example can therefore leave an amount after the federal Section 165(d) deduction while producing a zero NJ gambling-category amount; the complete returns determine federal and state liability.

If you report net gambling winnings, attach a supporting statement showing total winnings and total losses. This is required by the NJ Division of Taxation. (NJ Division of Taxation - Gambling Winnings (opens in a new tab))

Any NJ withholding from sportsbooks (3%, keyed to federal regular withholding under IRC §3402(q) rather than W-2G reporting) is credited against your NJ tax liability. Report these on the NJ-1040 as tax payments.

NJ Lottery prizes of $10,000 or less are not taxable in New Jersey (N.J.S.A. 54A:6-11). NJ Lottery prizes over $10,000 have their own separate withholding on the payout: 5% on payouts of $10,001-$500,000, 8% on payouts above $500,000, and 8% on any payout above $10,000 if the winner does not provide a valid taxpayer identification number.

Worked Examples: Federal vs. NJ Tax in 2026

Illustrative scenarios - not complete-return results. The scenarios below are hypothetical illustrations computed only from the stated facts at an assumed marginal bracket. Each displayed tax line is an illustrative gambling-income or estimated marginal-rate tax component; bracket placement, other income, deductions, credits, and withholding are assumed rather than established, so no line is a complete-return, refund, or liability result.

Scenario A: Casual Bettor, Profitable Year, Standard Deduction

Facts: NJ resident wins $8,000 on FanDuel Sportsbook, loses $3,000, and receives one W-2G for a qualifying parlay with a $2,400 payment whose proceeds are at least 300 times the wager. Takes the federal standard deduction. This isolated illustration assumes a 22% federal marginal rate and a 5.525% NJ marginal rate; neither rate is established by the stated gambling amounts alone.

Takeaway: Standard-deduction filers get no federal loss deduction. NJ separately applies same-year in-category netting with a zero floor regardless of the federal itemized-deduction choice.

Scenario B: Break-Even Bettor Under Stated 2026 Assumptions

Facts: NJ resident wins $20,000 on DraftKings, loses $20,000 across all sportsbooks in 2026. Itemizes federally. 22% bracket.

Result under the stated assumptions. A bettor who broke even economically and claims the stated deduction still carries an isolated $2,000 difference after the federal Section 165(d) deduction; whether it changes tax depends on the complete return. Without itemizing, a casual bettor has no Schedule A loss offset. Under the stated same-taxpayer, same-return, same-year, reporting-unit, and category assumptions, New Jersey's separate computation reaches a zero gambling-category amount; it does not establish total NJ liability. Qualifying wagering-trade-or-business status does not remove Section 165(d).

Scenario C: Net-Loss Bettor on the Standard Deduction

Facts: NJ resident wins $5,000 on FanDuel, loses $8,000. Takes federal standard deduction.

The reporting difference: Federal gambling winnings are included in income, while a loss deduction generally requires itemizing and cannot exceed substantiated winnings. Whether itemizing changes the return depends on all allowable deductions and the complete return.

Scenario D: DFS-Only Player - Form and Classification Reconciliation

Facts: A NJ resident participates in DFS contests on two platforms and has account ledgers, entry-fee records, winnings records, deposits, withdrawals, and any information returns actually furnished.

DFS does not carry a universal platform-wide Form 1099-MISC, Box 3, or annual-net reporting rule. Reconcile the actual payer, form, box, agreement, account ledger, payment flow, and activity facts; taxability and substantive classification are separate from form issuance.

Scenario E: Large-Win Bettor With W-2G and Federal Withholding

Illustrative facts: Assume a payer furnished Form W-2G for a qualifying parlay whose proceeds (payment minus the wager) were at least 300 times the wager. The wager produced $6,500 of net proceeds, which exceed the separate $5,000 regular-withholding threshold, and the payer withheld 24% federal ($1,560) and 3% NJ ($195) from that stated amount. Annual gambling: $12,000 wins, $7,000 of otherwise-allowable losses, and no separate covered expenses. Itemizes federally.

Withholding is a credit, not a separate tax. Reconcile the W-2G to the payment and wager it covers and reconcile the complete ledger to the supported taxable gambling income under the adopted reporting units; the form amount is not independently the federal transaction unit.

Worked Example: Multi-Platform NJ Bettor Filing 2025 Return

Sarah lives in Livingston, NJ and used DraftKings, FanDuel, and BetMGM in 2025. The following arithmetic assumes an independently supportable federal treatment of DFS net as separate other income and a supportable wagering measurement. Neither the platform label nor this illustration establishes those positions; itemization and the complete return must also be tested:

Sarah's Activity Summary

DFS classification note: Federal and NJ characterization must be determined separately from the actual contest and records. The $1,400 DFS net is an illustration input, not a rule authorizing entry-fee netting or a particular return line. The federal illustration is conditional on that treatment being independently supportable; the NJ category remains unresolved. See the fantasy sports guide.

Federal Return (Form 1040)

• Schedule 1 wagering winnings: $25,000 ($12,000 sportsbook + $8,000 casino + $5,000 sportsbook)
• DFS other income: $1,400 net ($2,800 prizes - $1,400 entry fees), reported separately from wagering in this illustration
• Schedule A wagering-loss deduction: $25,000 (the $25,800 of wagering losses is limited to wagering winnings for TY2025; DFS entry fees are already reflected in DFS net). Sarah can claim it only by itemizing, which means giving up the standard deduction; this illustration assumes she itemizes
• Illustrated federal component under the stated assumptions: $0 wagering + $1,400 DFS = $1,400
• Federal tax on $1,400 at a 22% marginal rate: $308
• Withholding credit (W-2G Box 4): A $3,200 win is below the $5,000 regular-withholding trigger, so normally nothing is withheld. If backup withholding had applied (for example, because Sarah did not furnish a correct SSN), the Box 4 amount would be credited on Line 25c - e.g., $768 withheld (24% of the $3,200) against the $308 of federal tax attributable in this example leaves $460 of excess credit from this component; whether it comes back as a refund depends on the whole return

NJ Return (NJ-1040)

• NJ gambling category: $25,000 wagering wins - $25,800 wagering losses = $0 (not below zero)
• DFS: $1,400 net is shown separately; its NJ category is a return-position question, so this example does not assign a standalone NJ tax without Sarah's full return facts
• NJ withholding credit: Credit the full amount of New Jersey income tax actually withheld, as supported by the forms and payment records

Key takeaway: Only under the independently supportable assumptions stated above, the TY2025 federal illustration taxes $1,400 of separately stated DFS net, or $308 at a 22% marginal rate, while wagering nets to zero after the deduction limit. The NJ result cannot be reduced to one tax number without resolving DFS classification and incorporating the rest of Sarah's NJ return.

What About 2026? The Phantom Income Problem

If the same independently supportable character and measurement assumptions applied in TY2026, the wagering-loss arithmetic would use the 90% cap:

• Deductible wagering losses: 90% × $25,800 = $23,220
• Net taxable wagering income: $25,000 - $23,220 = $1,780
• Add separately stated DFS net: $1,780 + $1,400 = $3,180
• Federal tax at a 22% marginal rate: about $700 ($3,180 × 22% = $699.60), versus $308 in the TY2025 illustration
• NJ gambling-category net remains $0; DFS classification and the full NJ return determine any NJ tax
• The 90% cap increases the simplified federal amount by about $392 ($699.60 - $308)

Which Tax Situations Require Separate Analysis for NJ Sports Bettors?

Free Bets and Bonus Credits

Promotional-credit reporting depends on the program terms, whether the credit represents the taxpayer's own wager or a noncash promotion, the amount actually paid, and the governing wagering-income and basis rules. For a $200 promotional credit that produces a $600 payout, retain the terms and ledger and determine the reportable amount from those facts; this article does not recommend a position or assume the promotional credit creates basis.

Keep promotion terms, account entries, wager records, and the actual payout with the annual gambling ledger.

Parlays and Same-Game Parlays

For a fully settled, cash-funded parlay, reconcile the gross payment with the supported cash wager. If a $50 cash wager produces an $8,000 gross payment, the transaction-level net win is $7,950 before applying the taxpayer's adopted reporting units and complete-ledger reconciliation. Promotional credits, partial settlements, refunds, voids, and other adjustments require separate analysis.

A longshot parlay can produce proceeds of at least 300 times the wager. The separate payment floor must also be met, and the payer's actual form must be reconciled with the wager record.

Cash-Out and Early Settlement

When the platform terms and ledger show that a cash-funded wager was fully settled through a "cash out," compare the cash-out payment with the supported cash wager at the transaction level. Partial settlements, promotions, refunds, voids, and other adjustments require separate treatment, and the adopted reporting unit controls the return amount.

Betting Across Multiple States

If you travel and place bets through sportsbooks licensed in other states - for example, placing bets in Pennsylvania or New York while visiting - source-state filing and tax treatment depend on that jurisdiction's rules and the actual activity. A New Jersey resident also applies New Jersey's resident-income rules. Any resident credit depends on tax actually paid to the other jurisdiction on the same income, New Jersey's category and credit limits, and the complete filing facts; an out-of-state wager does not create an automatic or full credit.

NJ residents owe NJ GIT on gambling income from all sources, including out-of-state casinos, offshore platforms, and states visited on vacation. You may receive a credit on Schedule NJ-COJ for taxes paid to other states - but only if that state actually taxes your nonresident winnings, and the credit is the lesser of the other state's actual tax on that income (from the completed nonresident return when required, or qualifying withholding when that jurisdiction does not require a return) and the proportional NJ tax on the same income.

Which Records Support Sports Betting Tax Reporting?

For a taxpayer claiming a gambling-loss deduction, IRS Topic 419 (opens in a new tab) and Publication 529 (opens in a new tab) say to keep an accurate diary or similar record of gambling winnings and losses, plus receipts, tickets, statements, or other records showing both amounts. Platform records may form part of the diary-or-similar-record or supporting evidence when their accuracy, completeness, and scope support the treatment.

Download available year-end statements and retain account exports or screenshots under the platform's current access policy. Reconcile those materials with an accurate diary or similar record across platforms. Track free bets and bonuses separately because their tax treatment and any basis depend on the promotion terms and amounts actually included in income. Note activity in other states for source and filing analysis.

Retain records that support the winnings, losses, and other amounts reported; the sufficiency and treatment of those records depend on the underlying activity and applicable rules.

A contemporaneous gambling log under Rev. Proc. 77-29 records the date, type of gambling, location/platform, people present, and amounts won and lost. Preserve a December 31 account-balance screenshot with the year-end records; it does not replace the complete ledger.

Estimated Tax Payments for NJ Gamblers

Estimated Tax Payments for NJ Gamblers

If you expect to owe more than $400 in NJ tax or $1,000 or more in federal tax for the year after withholding and credits, estimated payments generally apply. Both tests look at the total tax on your whole return, not only the tax on gambling income. Current Form NJ-2210 computes underpayment interest from the smaller of 80% of current-year NJ tax or 100% of prior-year NJ tax. The Division separately describes the statutory 110% high-income exception but says it imposes interest using the 100%-prior/80%-current calculation.

Where Do I Find My Year-End Tax Statements from DraftKings and FanDuel?

Navigation labels, statement availability, and document types can change. For DraftKings, FanDuel, BetMGM, Caesars, or another sportsbook, use the platform's current help page and signed-in tax-document or statement area.

Distinguish an information return such as Form W-2G or Form 1099 from an account activity or win/loss summary; one does not necessarily replace the other.

Download the documents actually available for the relevant year and reconcile them to the full transaction history, deposits, withdrawals, and accurate diary or similar record.

If a document you expected is not available, use the platform's current support channel and preserve the response with your records.

A payer must furnish an information return only when the applicable form rules require it. A consolidated win/loss or activity summary is a separate account feature, so verify current availability rather than assuming one will be provided.

Other Operator Records and Product Differences

These selected profiles summarize dated public-source checks. Operator status, menu paths, casino partnerships, and form practices can change; verify the current operator information and actual account documents. The NJ DGE’s authorized-operator list is the complete inventory, including brands not profiled here.

1. DraftKings

NJ License: Operates under Resorts Casino Hotel (Atlantic City). Licensed by NJ Division of Gaming Enforcement.

Where to find tax documents: Use DraftKings' current account help to locate the tax-document area in the app or on desktop. Confirm the actual form-year furnishing deadline and current account availability; do not assume one January deadline covers every document.

Win/loss statements: Use DraftKings' current account help or support to locate the statement. The statement is DraftKings' own account summary, not an IRS form; reconcile its scope and definitions with your wagering records and any tax forms.

• DK Dollars, Crowns, and Dynasty Rewards: keep the earning and redemption records, review the current program terms, and reconcile any tax form actually furnished; do not assume every reward is included in a Form 1099-MISC.

2. FanDuel

NJ License: Sportsbook under Meadowlands Racing & Entertainment. Casino initially under Golden Nugget.

Where to find tax documents: Follow FanDuel's current tax-document access instructions; its NJ terms also let you request paper copies of tax documents from Customer Service. Confirm the actual form-year furnishing deadline and current account availability; do not assume one January deadline covers every document.

Win/loss statements: FanDuel's Player Activity Statement shows deposits, withdrawals, winnings, and bets. It is an account summary, not a tax form; reconcile it separately from any tax form furnished.

• Ordinary table-game wagers generally do not generate a W-2G - but review high-odds side bets, progressive jackpots, and electronic table products, and keep any form actually issued
• Cash-out/early settlement: the IRS sources reviewed for this guide (the W-2G instructions, Publication 529, and AM 2008-011) do not address cash-outs specifically; record the amount received and the stake for that wager, and treat the result as facts-dependent

3. BetMGM

NJ License: Operates under Borgata Hotel Casino & Spa (Atlantic City).

Where to find tax documents: Check BetMGM's current account help for tax-document access; its account FAQ directs users to Customer Service if a win/loss statement cannot be accessed. Confirm the actual form-year furnishing deadline and current account availability; do not assume one January deadline covers every document.

• Free bets: IRS guidance does not settle how a sportsbook measures the wager on a free bet for the W-2G tests (the zero-wager rule in Treas. Reg. 1.6041-10 covers bingo, keno and slot aggregate reporting); check any form actually issued against your records
• If a W-2G appears incorrect, reconcile it to the actual payment and wagering records, then use BetMGM's current support process to request a correction and preserve the response
• MGM Rewards points: earning and redemption are analyzed from the program terms, what the points were earned for, and the recipient's rights - published IRS guidance does not settle a categorical rule, and a redemption can be taxable regardless of whether a form is issued

4. Caesars Sportsbook

NJ License: The NJ DGE's July 2026 report lists Caesars Sportsbook under CIENJ (Tropicana) and Monmouth. Separately, the historical internet-gaming permit for Caesars Interactive Entertainment New Jersey, affiliated with Boardwalk Regency, dates to November 2013; that history does not identify the current sportsbook counterpart.

Where to find tax documents: Use the current Caesars Sportsbook account help or support to locate online wagering documents. Important: Caesars Rewards has its own Win/Loss Statement through My Rewards; check which products, properties, and dates each statement covers before relying on it for online or mobile wagering.

• Caesars Rewards credits: same analysis - the program terms and complete facts, not an earned-versus-redeemed label, determine whether and when value is income
• 'Risk-free bet' promotions: winnings paid out from a bonus bet are gambling winnings; the tax treatment of the credited bonus bet itself is not settled by IRS guidance and depends on the promotion's terms and the bettor's rights
• Odds boosts: fully taxable enhanced payouts with no separate treatment

5. theScore Bet (formerly ESPN BET)

NJ License: Current NJ terms and the NJ DGE's July 2026 report identify Resorts Casino Hotel for theScore Bet sportsbook and casino. PENN Entertainment rebranded ESPN BET to theScore Bet effective December 1, 2025 (ESPN BET had earlier replaced Barstool Sportsbook in November 2023). Accounts auto-migrated; historical W-2Gs issued under ESPN BET or Barstool remain valid.

Where to find tax documents: Use theScore Bet's current account help to locate tax forms. For a win/loss statement, theScore Bet's help page directs users to its 24/7 Customer Support Team.

6. Fanatics Sportsbook

NJ License: The NJ DGE's July 2026 report lists Bally's Atlantic City for both Fanatics sportsbook and casino. Launched in NJ May 8, 2024.

FanCash quirk: FanCash accrues on eligible cash wagers at rates of up to 10% depending on the odds and applicable account schedule, with exclusions - check the current Fanatics FanCash program terms rather than assuming every wager earns. FanCash redeemed at Fanatics.com for merchandise may have separate tax implications as promotional income. Winnings from FanCash-funded bets are taxable.

7. Bet365

NJ License: Under Hard Rock Hotel & Casino Atlantic City. Available in NJ on mobile and desktop per bet365's current NJ page.

Platform quirk: Early Payout offers can settle a qualifying straight bet as a winner once your team reaches a specified lead; in a parlay, only the qualifying selection is marked won and the other selections still run, so check the offer terms. The IRS sources reviewed for this guide (the W-2G instructions, Publication 529, and AM 2008-011) do not address early-payout promotions specifically; record the settled amount and the stake for that bet, and reconcile any form actually issued.

8. PokerStars NJ / WSOP.com

PokerStars NJ: Licensed through Resorts Casino Hotel. PokerStars NJ completed its migration to 'PokerStars Exclusively on FanDuel' in April 2026. If legacy PokerStars records are no longer available in your account, request them through FanDuel's current support channel, and keep any transaction exports, W-2Gs, bank records, and your own gambling diary; reconcile them for completeness, because W-2Gs and bank records alone may not show every wager.

WSOP.com NJ: Licensed through Caesars/Tropicana AC. The shared network covers NV, NJ, MI and PA; see WSOP four-state announcement (opens in a new tab).

Tax forms: W-2G for poker-tournament winnings of $2,000 or more, net of buy-in, for 2026 payments under the January 2026 instructions (more than $5,000 net through 2025). No W-2G for ordinary cash-game wins. 1099-MISC rules can separately apply to freerolls and promotional prizes.

Poker-specific rules:

• Cash game players must self-report; IRS guidance does not settle how poker cash-game results are measured (for example, by session), so keep the Rev. Proc. 77-29-style diary that substantiates each session
• Re-buys and add-ons: the W-2G instructions reduce tournament winnings by 'the amount of the wager or buy-in' without saying whether re-buys and add-ons count, so check how the payer computed any form issued and keep your own record of each re-buy
• Satellite winnings: a seat won in a satellite is a noncash prize; record its fair market value and your satellite buy-in, and check how any Form W-2G was computed (the W-2G instructions measure poker-tournament winnings net of the wager or buy-in)
• Rakeback and bonuses: IRS guidance does not settle whether rakeback is income when received or a reduction of the rake you paid; record each payment and apply one documented position

9. TVG / FanDuel Racing (Horse Racing)

NJ License: Operates as 4NJBets. Authorized by NJ Racing Commission (not DGE). Minimum age: 18 (vs. 21 for sportsbook/casino). Availability is not nationwide: whether a NJ resident can place an online horse wager while physically in another state depends on that destination state's law, the platform's terms, account eligibility, and the operator's geolocation controls (the NJRC requires geolocation and anti-spoofing and prohibits knowingly accepting an out-of-state wager where placement conflicts with state or federal law).

Tax forms: Horse-racing W-2G reporting uses a payment floor ($600 for 2025; $2,000 for 2026) plus proceeds (payment minus the wager) of at least 300 times the wager. The 2017 IRS rule uses total ticket cost as the wager for the multiple test: a $1 superfecta box on five horses costs $120, so the proceeds must be at least $36,000 (300 times the wager), which means a payment of at least $36,120, while also clearing the dollar floor.

10. TwinSpires (Horse Racing) - NOT available in New Jersey

NJ status: TwinSpires (owned by Churchill Downs Inc.) is not available for horse-racing ADW in New Jersey - TwinSpires' own 2026 availability list names New Jersey among the states where its online wagering is unavailable, and the NJ Racing Commission directs eligible NJ residents to 4NJBets. Do not expect TwinSpires tax documents for New Jersey wagering; use the platform through which the wager was actually and lawfully placed. (This will be revisited only if the NJRC issues a dated approval and TwinSpires shows current first-party NJ availability.)

Prediction Markets

Prediction-market classification remains unsettled. Platform labels do not establish a federal filing position. Preserve complete records and follow a records-first approach for the current procedural boundary.

11. Kalshi

NJ status: A federal district court granted Kalshi a preliminary injunction against New Jersey regulators in April 2025. The Third Circuit affirmed it on April 6, 2026 (KalshiEX LLC v. Flaherty, No. 25-1922, 2-1), and New Jersey petitioned the U.S. Supreme Court for review on September 2, 2026 (Flaherty v. KalshiEX, LLC, No. 26-299, pending as of September 28, 2026). The injunction is preliminary and the case is ongoing, so verify current status.

Tax documents: Check the current account Tax Info area for any form actually furnished and download the complete transaction or P&L export. Platform practices and the character of interest, referral, and event-contract payments can differ; absence of a displayed form does not establish tax character, nonfiling by the platform, or exemption.

12. Robinhood Prediction Markets

NJ status: Robinhood's quarterly report for the period ended June 30, 2026 says a preliminary injunction in its New Jersey case was extended; verify current contract availability, platform restrictions, and court orders.

Tax documents: Check the current Tax Center and event-contract annual statement for the actual year. Do not treat an annual CSV as an information return or assume that a platform statement settles character, basis, filing, or whether another form was furnished or filed.

13. Polymarket

NJ status: At last verification, Polymarket International geofenced US users and Polymarket US now publishes a public sign-up and identity-verification process; verify current eligibility and product restrictions.

Records: Preserve account exports, wallet and blockchain records, fees, deposits, withdrawals, and any form actually furnished. Do not infer tax character or a platform's filing position solely from the absence of a document in the user interface.

Platform Availability Restrictions and Transitions

14. Underdog: Fantasy Contest Availability Changed

NJ status: Underdog's September 2026 notice (opens in a new tab) lists September 10 as the cutoff for new NJ fantasy contests, including Best Ball Drafts. Existing entries settle normally. The notice distinguishes continuing prediction picks and other products; verify the current product and location rules before participating. Public notice checked September 16, 2026; no private account was reviewed.

15. Skillz (Skill-Based Gaming)

NJ status: Skillz states that cash matches are available in NJ except Dominoes; its terms require participants to be at least 18. Verify current product and location terms. See Skillz NJ cash-play restrictions (opens in a new tab) and Skillz legal terms (opens in a new tab).

Quick-Reference Comparison Table

Operator status, menu paths, casino partnerships, and form practices can change. These rows identify records to check, not guaranteed form issuance or tax classification. Confirm current public operator information and your actual account documents; apply the filing-year instructions to the actual product and payment.

What If I Didn't Receive a Form I Expected?

Step 1: Check the current account and help instructions. Platform navigation and labels change. Use the signed-in tax-document or statement area identified by the platform's current help page, select the relevant year, and preserve both any furnished information return and the underlying account history.

Step 2: Verify the applicable reporting rules. For a sportsbook wager or combined group of identical wagers under the current instructions, the payment must be at least $2,000 for 2026 ($600 for 2025) and the proceeds (payment minus the wager) at least 300 times the wager. A $1,800 payment fails the 2026 dollar floor regardless of its ratio. For DFS activity, separately identify the legal payer, recipient, actual form and box, contest agreement, account ledger, payment flow, payment character, threshold, and exceptions; do not infer a Form 1099-MISC or annual-net amount from the platform name. Income can remain taxable without a form.

Step 3: Request missing records when needed. Use the platform's current tax-support channel to ask what tax documents or activity statements are available for the year. Preserve the full transaction history because it supports reconciliation even when no formal form was issued.

Step 4: File from the complete supported record. Income remains reportable when no form is furnished, but a year-end statement or platform net display may use definitions that do not equal the return amount. Reconcile the accurate diary or similar record, deposits, withdrawals, supporting statements, and actual forms under the adopted reporting units and classification. If a form arrives later, amend only when the filed return's amounts or treatment are actually wrong.

Step 5: If a form appears incorrect. Reconcile the form to the payment or wager it covers and to the complete transaction history, then request a correction from the issuer. If a correction is not obtained by the filing deadline, determine the supported return treatment and whether any adjustment, disclosure, or attachment is appropriate under the current form and return instructions; there is no universal discrepancy-statement attachment.

When Additional Reconciliation May Be Needed

The reporting work depends on the number of accounts, forms, jurisdictions, record differences, deduction choices, and classification questions. Examples requiring additional reconciliation can include:

• You used multiple sportsbooks and need to consolidate their records
• A W-2G does not reconcile to the payment or wager it covers, or the collection of forms does not reconcile to the complete wager ledger
• You gambled in multiple states
• Your wager ledger contains material or high-volume activity requiring transaction-level support
• You're evaluating whether to itemize deductions
• You received a 1099-K from PayPal or Venmo related to gambling transactions
• You have high-volume activity requiring reconciliation under the post-2025 Section 165(d) rules
• You want to evaluate whether you qualify as a professional gambler

Gambling reporting can require detailed records and classification analysis. Compare any professional fee with the written scope; no tax savings or fee breakeven is promised.

Key Takeaway

Reconcile the actual payer, form, account ledger, wagering records, and withholding before applying the federal and NJ rules. Separately establish the activity classification and adopted reporting units. For tax years beginning before 2026, otherwise-allowable covered amounts remain subject to the prior Section 165(d) wagering-gain ceiling. For tax years beginning after 2025, Section 165(d) takes into account 90% of the combined otherwise-allowable wagering losses and covered expenses and still caps the deduction at wagering gains. New Jersey applies its separate same-year in-category computation with the same-taxpayer, same-return, reporting-unit, zero-floor, no-cross-category-offset, and no-carryforward boundaries. A return preparer can compute the federal and NJ treatment from client-supplied records, but no combined-tax result is promised. Learn about the gambling tax services

Important: DraftKings Predictions & FanDuel Predicts

Prediction-market products and availability change quickly. Event-contract classification remains unsettled; preserve platform statements and contract-level records separately from sportsbook records. A records-first approach does not choose a filing position.

Related reading: How NJ Taxes Gambling Winnings | Gambling tax services

Frequently Asked Questions

Requesting a Sports-Betting Reporting Scope

Tax rules change frequently. Use the contact form to request a written scope; sending the form creates no engagement or promise of an outcome. Greg Monaco is a NJ-licensed CPA and the firm's sole practitioner.

Use the contact form to request an intake review