Are gambling winnings taxable in New York?
Yes — all of them. Gambling winnings are taxable income at both the federal and New York State level, whether they come from a retail casino, a regulated sportsbook, or an offshore online casino. There is no exemption for playing offshore. This page is general information, not tax advice — for your situation, consult a qualified professional.
Federal and New York tax rates
| Level | Rate | Notes |
|---|---|---|
| Federal (IRS) | 24% withholding on larger wins | All winnings are taxable income; withholding kicks in above set thresholds |
| New York State | 4%–10.9% | Based on total taxable income |
| New York City | Additional local tax | NYC residents may owe city income tax on top |
Reporting offshore casino winnings
Offshore casinos won't issue a US W-2G, but the obligation to report is yours. Record every deposit, win, withdrawal and loss. Gambling losses can be deducted up to the amount of your winnings if you itemise — keeping a simple log protects you and can lower the bill.
Crypto winnings and tax
If you bank in crypto at a crypto casino, there's a second layer: the IRS treats crypto as property, so converting winnings to dollars (or another coin) can create a capital-gains event separate from the gambling tax. Track the value at the time you receive and convert each amount.
NY gambling taxes — FAQ
- Do I pay tax on online casino winnings in New York?
- Yes. All gambling winnings are taxable income, including from offshore casinos. The IRS taxes them federally (a flat 24% withholding applies on larger wins) and New York State adds 4%–10.9% based on your income.
- How much is the gambling tax in New York?
- Federally, a flat 24% on reportable wins. New York State income tax on winnings ranges from 4% to 10.9% depending on your total taxable income; New York City residents may owe additional city tax.
- Do I have to report offshore casino winnings?
- Yes. US residents must report all gambling winnings regardless of where the casino is based. Keep records of deposits, wins, withdrawals and losses; gambling losses can be deductible if you itemise, up to winnings.
- Does crypto change my tax obligations?
- It can. The IRS treats cryptocurrency as property, so converting crypto winnings can trigger a separate capital-gains event on top of gambling tax. Keep transaction records and consider a tax professional.