Originally Posted by
seemoreroyals
Unless you file as professional gambler status, which requires a bunch of extra paperwork, you have to show your w2g's as ordinary income. Your losses have to be shown on your schedule A and you can only offset up to the extent on your total w2g winnings. If you have enough other deductions on your schedule A then it will kind of wash itself out. If not you will be unfairly taxed on some of your winnings. IMO if you have for instance $20,000 in w2g's you should be able to show win/loss statements from the properties were you play to prove to the IRS that your losses exceed your gains but they won't let you do that.