Every NJ Sportsbook and Casino Tax Form: A Platform-by-Platform Guide (2025-2026)

Updated for the One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) - Key 2026 changes reflected: W-2G dollar threshold raised to $2,000 across the board (slots/bingo from $1,200, keno from $1,500, and sports betting from $600 - sports keeps the 300:1 odds test), 1099-K restored to more than $20,000 and more than 200 transactions, 90% gambling loss cap effective TY2026. NJ still allows full 100% netting on the NJ-1040. Last reviewed: July 15, 2026 by Greg Monaco, CPA

Every dollar you win gambling is taxable - but how each platform reports that income to you and the IRS varies dramatically. For New Jersey residents, the 2025-2026 tax landscape involves a patchwork of W-2G forms, 1099-MISC filings, and platforms that report nothing at all, leaving you to self-report. This guide covers every platform available in NJ - their tax forms, thresholds, where to download documents, and the quirks that cause the most problems during filing.

In This Article

1. Federal and NJ tax rules that apply to every platform
2. DraftKings - sportsbook, casino, DFS, and predictions
3. FanDuel - sportsbook, casino, racing, and DFS
4. BetMGM - sportsbook, casino, and poker
5. Caesars Sportsbook - sportsbook and casino
6. theScore Bet (formerly ESPN BET), Fanatics, Bet365 - newer NJ platforms
7. PokerStars NJ / WSOP.com - online poker
8. TVG / 4NJBets - horse racing (TwinSpires is not available in NJ)
9. Prediction markets - Kalshi, Robinhood, Polymarket
10. Platforms NOT available in NJ
11. Quick-reference comparison table
12. How to report NJ sports betting on your tax return
13. The biggest tax traps for NJ sports bettors
14. Estimated tax payments for NJ gamblers
15. Frequently asked questions

The Federal and NJ Tax Rules That Apply to Every Platform

Before diving into individual platforms, understand the rules that govern all of them.

Federal W-2G Thresholds (Tax Year 2025)

OBBBA Changes for Tax Year 2026

Starting TY2026, slots, bingo, and keno use a $2,000 W-2G floor, while sports and other parimutuel wagers use a $2,000 floor plus the unchanged 300:1 odds test. Poker-tournament winnings of $2,000 or more, net of buy-in, trigger reporting for 2026 payments; the poker rule was more than $5,000 net through 2025. Source: January 2026 IRS Instructions for Forms W-2G and 5754; Pub. 1099 (2026).

Federal Withholding

Mandatory 24% federal withholding applies when winnings minus wager exceed $5,000 AND the payout is at least 300:1. Backup withholding at 24% kicks in if you fail to provide a valid SSN/TIN.

NJ's Critical Advantage: Category (g) Net Income

NJ treats gambling as a 'net' category under N.J.S.A. 54A:5-1(g). You report total winnings minus total losses (floor of zero) on the NJ-1040 Line 24, regardless of whether you itemize federally. NJ did not adopt the OBBBA's 90% loss cap, so NJ still allows full 100% netting. A break-even gambler owes $0 in NJ state gambling tax even when they owe federal tax on 'phantom income' under the new 90% cap.

NJ Withholding

Per NJ-WT, NJ casino/gambling withholding tracks federal withholding triggers and is 3% of the winnings amount when triggered. Important scope: slots, keno, bingo, AND NJ Lottery winnings are EXCLUDED from the 3% gambling withholding; the 3% applies when the federal Section 3402(q) trigger is met - principally sports/parimutuel wagers over $5,000 at 300:1 odds and sweepstakes/wagering-pool prizes over $5,000. NJ Lottery prizes have their own separate withholding (5% on prizes of $10,001-$500,000; 8% above $500,000). NJ's actual income tax rates on gambling range from 1.4% to 10.75% - the 3% is just the prepayment withholding rate, not the final tax rate.

1. DraftKings

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

Tax forms: W-2G for sportsbook and casino wins on a per-wager basis. 1099-MISC for DFS and Pick6/Predictions on a net annual basis ($600+ through 2025; $2,000+ starting 2026).

Where to find tax documents: Mobile app: Profile → Financial Center → Download Tax Documents. Desktop: Username → Account Information → Tax Information. Forms available by January 31.

Win/loss statements: Financial Center → Statements and Transactions → Show Summary. Adjustable by date range, sport, and bet type. Not sent to the IRS.

Platform quirks:

• Bonus bets: Platforms structure most as “stake removed from payout.” The tax treatment of promotional stakes is not settled by IRS guidance. Distinguish the promotional stake itself (which cost you nothing) from your realized cash winnings: a common practitioner approach treats the full cash payout from a winning bonus bet as taxable gambling income because your own cash stake was $0, but that is a practitioner position, not an established rule. Document how each platform structured and reported the promotion
• Casino slots can generate multiple W-2G forms from a single session despite losing money overall
• DK Dollars, Crowns, and Dynasty Rewards redemptions included in 1099-MISC calculations
• A PayPal withdrawal does not itself trigger Form 1099-K. Reconcile only if a payment processor actually issues a 1099-K covering payment transactions that overlap income reported elsewhere; do not assume an ordinary sportsbook withdrawal will be reported twice

2. FanDuel

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

Tax forms: W-2G for sportsbook, casino, and racing (per-transaction). 1099-MISC only for DFS/Picks (net annual profit $600+ through TY2025; $2,000+ starting 2026 per OBBBA Section 70433). FanDuel explicitly states: 'We do not report annual profit or loss to the IRS for FanDuel Sportsbook, Casino, or Racing.'

Where to find tax documents: Account → Tax Center. Forms available by January 31.

Win/loss statements: 'Player Activity Statement' - explicitly described as not a tax document. Access via Account → Activity statement.

Platform quirks:

• Bonus bets: commonly treated as a $0 stake with the full cash payout taxable (a practitioner approach, not settled guidance - see the DraftKings note above)
• 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 treated as a completed bet

3. BetMGM

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

Tax forms: W-2G consolidated on a 24-hour period by game type. 1099-MISC for promotional prizes ($600+ through TY2025; $2,000+ starting 2026 per OBBBA Section 70433).

Where to find tax documents: Account → Transaction History → W-2G Tax Form (for W-2Gs) or End of Year Statement (for win/loss). Available by January 31.

Platform quirks:

• Free bets are NOT deducted from the win when calculating W-2G thresholds
• Some players have reported receiving inaccurate W-2G forms - contact compliance (not general support) to dispute
• MGM Rewards points: generally not separately taxable when earned (treated as rebates), may be reportable when redeemed

4. Caesars Sportsbook

NJ License: Operates under Boardwalk Regency LLC d/b/a Caesars Atlantic City. One of NJ's first internet gaming permits (November 2013).

Tax forms: Standard W-2G for qualifying wins. 1099-MISC for promotional prizes ($600+ through TY2025; $2,000+ starting 2026 per OBBBA Section 70433).

Where to find tax documents: My Account → Statements and Activity → Win/Loss Statement. Important: The Caesars Rewards win/loss statement at caesars.com/myrewards is for brick-and-mortar only - it does NOT include mobile/online wagering.

Platform quirks:

• Caesars Rewards credits: not taxable when earned (rebates), reportable when redeemed for cash/prizes
• 'Risk-free bet' promotions: bonus bets from losses aren't taxable, but winnings from them are
• Odds boosts: fully taxable enhanced payouts with no separate treatment

5. theScore Bet (formerly ESPN BET)

NJ License: Under Resorts Casino Hotel and Freehold Raceway. 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.

Tax forms: W-2G for qualifying sports bets and casino wins. Does NOT issue 1099 forms summarizing annual activity.

Where to find tax documents: Profile → My Account → W2G Tax Forms. Win/loss statements require contacting 24/7 Customer Support - not self-service.

6. Fanatics Sportsbook

NJ License: Partners with Meadowlands Racetrack (sportsbook) and Bally's Atlantic City (casino). Launched in NJ May 8, 2024.

Tax forms: W-2G for qualifying transactions. 1099-MISC for promotional bonuses, referrals, contest prizes ($600+ through TY2025; $2,000+ starting 2026 per OBBBA Section 70433).

FanCash quirk: Earns 1-10% on every wager. 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. App-only in NJ.

Tax forms: Standard W-2G. Available in Members area → W-2G Tax Form section.

Platform quirk: Early Payout offers (bet settled as winner if your team builds a large lead) are treated as wins for tax purposes.

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. The old client's transaction-history access window closed April 30, 2026 - if you missed it, request records through FanDuel support (your CPA can also work from W-2Gs and bank records).

WSOP.com NJ: Licensed through Caesars/Tropicana AC. Only four-state shared network (NV, NJ, MI, PA).

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; results are typically measured per session (keep the Rev. Proc. 77-29-style diary that substantiates each session)
• Re-buys and add-ons increase tournament buy-in, reducing net winnings for W-2G purposes
• Satellite winnings: FMV of tournament seat is the win from the satellite
• Rakeback and bonuses are taxable income when received

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: W-2G for horse racing wins at 300:1 odds plus the dollar floor ($600 for 2025 wins; $2,000 for 2026 wins under OBBBA). The 2017 IRS rule uses total ticket cost for threshold calculation - a $1 superfecta box on 5 horses costs $120, so it must pay $36,000+ to trigger W-2G.

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

The three prediction market platforms - Kalshi, Polymarket, and Robinhood - share a fundamental problem: the IRS has issued zero formal guidance on how event contract gains should be classified. For the full analysis, see my Prediction Market Tax Guide.

11. Kalshi

NJ status: Operating under federal court preliminary injunction (April 2025).

Tax forms: Kalshi does NOT issue any tax form for event contract trades. Only issues 1099-INT (interest on cash balances) and 1099-MISC (referral bonuses).

Tax documents: Account → Tax Info page. P&L reports available as CSV, updated monthly.

12. Robinhood Prediction Markets

NJ status: Available for non-sports contracts only.

Tax forms: Robinhood explicitly states it will NOT provide 1099s for event contract trades. An Event Contracts Annual Statement (CSV) is provided but is not a tax form.

13. Polymarket

NJ status: Polymarket International is geofenced to block US users. Polymarket US is invite-only beta.

Tax forms: Issues no tax forms whatsoever. Traders must reconstruct P&L from blockchain records.

Platforms NOT Available in NJ

14. Underdog Fantasy (Partially Available)

NJ status: Drafts (Best Ball) and Pick'em Champions available. Standard Pick'em NOT available.

Tax forms: 1099-MISC when net profit is $600 or more ($2,000 or more starting 2026).

15. Skillz (Skill-Based Gaming)

NJ status: Available. Legal age 18+.

Tax forms: 1099-MISC for net prize winnings of $600+ ($2,000+ starting 2026). Entry fees DO reduce reportable amount - unlike sweepstakes casinos.

Worked Example: Multi-Platform NJ Bettor Filing 2025 Return

Sarah lives in Livingston, NJ and used DraftKings, FanDuel, and BetMGM in 2025. Here's how her tax return comes together:

Sarah's Activity Summary

DFS classification note: New Jersey's Fantasy Sports Act treats qualifying DFS as skill-based - not gambling - under NJ law. Whether DFS profit belongs in NJ's gambling category (nettable against sportsbook losses on Line 24) or is other income that cannot be netted is not clearly settled. To keep the arithmetic internally consistent, this illustration reports the $1,400 DFS net separately from wagering; the NJ category remains a position decision. 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)
• Net taxable amount from these activities: $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 Sarah had requested voluntary withholding (or backup withholding applied), any Box 4 amount is credited on Line 25c - e.g., $768 withheld against the $308 of federal tax attributable in this example would produce a $460 refund of the excess

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: 3% of any NJ-withheld amounts

Key takeaway: The reconciled 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 Sarah had the same results in TY2026, the 90% loss cap would apply:

• 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)

Quick-Reference Comparison Table

Platform details verified as of July 14, 2026 against each operator's NJ offering and in-app tax-document menus. Operator status, menu paths, casino partnerships, and form practices change frequently - confirm inside your own account (and against the NJ DGE authorized-operator list (opens in a new tab)) before relying on any row. Form issuance can also vary by product and by year within the same platform.

How to Report NJ Sports Betting Income on Your Tax Return

Step 1: Gather All Tax Documents

Download W-2G forms, 1099-MISC forms, and win/loss statements from every platform you used. Even if no form was issued, you must report all gambling income.

Step 2: Federal Return

• W-2G income: Report on Schedule 1, Line 8b (Other Income - Gambling)
• Non-W-2G income: Also report on Schedule 1, Line 8b (self-reported)
• Gambling losses: Deductible on Schedule A, Line 16 (only if you itemize). Limited to 90% of total losses for TY2026+ (OBBBA Section 70114)
• 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

Step 3: NJ Return

• Report net gambling income (total wins minus total losses, not below zero) on NJ-1040, Line 24
• NJ allows full 100% netting regardless of the federal 90% cap
• Credit any NJ withholding (3%) on the NJ-1040
• Attach a supporting statement showing total winnings and total losses
• Keep the NJ totals as their own computation - total winnings and total losses for the year; NJ's annual category netting is not authority for the federal wagering measurement, so keep it independent of any federal session ledger

Step 4: Multi-Platform Reconciliation

If you use multiple platforms, total all wins and all losses across all platforms for the year. A common mistake: reporting each platform separately instead of netting across all gambling activity. Your total gambling income for the year is the aggregate of all platforms.

The Biggest Tax Traps for NJ Sports Bettors

Trap 1: The 90% Loss Cap Creates Phantom Income (TY2026+)

Even if you break even across all platforms, you owe federal tax on 10% of your losses. Example: $100K wins and $100K losses = $10K phantom taxable income at federal level. NJ tax: $0 (full netting allowed). For the full analysis, see my 90% Gambling Loss Cap guide.

Trap 2: Bonus Bets Have $0 Cost Basis

Every platform uses bonus bets with a 'stake removed from payout' model. If a $200 bonus bet wins at +200 odds, you receive $400. Your cost basis is $0, so the full $400 is taxable - not just the 'profit.'

Trap 3: W-2G Reports Per-Event Wins, Not Net Results

You can receive a W-2G showing $68,000 in slot winnings from 45 minutes of play - despite losing money overall. The W-2G reports each qualifying spin, not your session result. You must claim the offsetting losses separately on Schedule A.

Trap 4: Sweepstakes Casino 'Wins' May Be Fully Taxable

Sweepstakes casinos (Chumba, Stake.us - now banned in NJ) treated Gold Coin purchases as entertainment, not wagers. The full redemption amount of Sweeps Coins may be taxable as prize income with no loss offset. If you played before the NJ ban, consult a CPA.

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 from gambling income after withholding and credits, you must make quarterly estimated payments. NJ safe harbor: pay 80% of current-year NJ tax or 100% of prior-year NJ tax (110% if prior-year gross income exceeds $150,000 per N.J.S.A. 54A:9-6(d)(3)). See my estimated tax calculator.

Frequently Asked Questions

Want to Make Sure You're Not Overpaying on Gambling Taxes?

Most NJ bettors overpay because they report W-2G totals without properly accounting for losses, the session method, or NJ's 100% netting advantage. If you use multiple platforms, the reconciliation gets complicated fast.

I'm Greg Monaco, a NJ-licensed CPA who works on gambling-tax preparation. For an ordinary, non-examination CP2000 or correspondence notice, support requires separate written acceptance and is limited to preparing a client-submission package; the client sends it. Where authorized in writing, Monaco CPA may contact the agency under a power of attorney; Monaco CPA does not represent clients in examinations, appeals, collections, offers in compromise, or voluntary disclosures. Greg is the sole practitioner and personally reviews, approves, and signs all client-facing work.

Use the contact form to request an intake review

Related Articles

Related reading: NJ Casino Winnings Guide | Session Method Guide | Professional Gambler Status | DraftKings/FanDuel Tax Guide | IRS Detection Methods

Circular 230 Disclosure: This content is for informational purposes only and does not constitute tax advice. Written tax advice from a Circular 230 practitioner is governed by 31 C.F.R. §10.37; Treasury’s 2014 final regulations eliminated the former “covered opinion” rules and their mandatory disclaimer legend, so no such legend appears here. Tax laws change frequently; consult a licensed CPA about your specific facts.