Gambling With an Edge Russell Fox on taxes for gamblers
Jul 16, 2025
Russell Fox, a tax expert specializing in gambling taxes, shares vital insights on how recent tax changes impact both amateur and professional gamblers. He discusses the complexity of session method logging, the confusion around W2Gs and 1099s, and emphasizes the importance of meticulous record-keeping to avoid pitfalls. Russell dives into different tax obligations for U.S. citizens versus non-residents and speculates on the potential for increased tax fraud. He also outlines how the new laws may affect high-limit gambling and overall compliance in the gambling community.
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Aggregate Same-Casino Play As One Session
- For multi-machine slot sessions, aggregate play in a single casino visit as one session when you start and end with known bankroll amounts.
- Always report total W2Gs and adjust wins/losses on your return to match IRS records.
Lobby Lawmakers For A Technical Fix
- Contact your representatives to oppose or seek fixes; bipartisan technical corrections bills sometimes follow.
- If you have Republican representation, respectfully urge them to act because legislative fixes require broader support.
Mind The 1099 And W2G Threshold Differences
- Expect 1099 thresholds to change: most 1099s rise to $2,000 starting 2026, but W2G issuance thresholds did not change.
- Know that backup withholding threshold for W2G was raised to $2,000 while W2G reporting still triggers at prior lower levels.