Certain Gambling winnings are generally considered ordinary income for U.S federal tax purposes, but not all wins are reported to the Internal Revenue Service. The amount reported is unique to each customer’s wager and circumstances.
When the first reportable win occurs, you may be asked to complete IRS Form W-9. If a wager is subject to IRS reporting requirements, DraftKings will issue IRS Form W-2G, Certain Gambling Winnings, which is used to report gambling winnings, and any federal income tax withheld on those winnings. The requirements for reporting and withholding depend on the taxable reporting criteria for the type of gambling, the amount of the gambling winnings, and in some cases the ratio of the winnings to the wager.
DraftKings advises its customers to consult with a professional when preparing their taxes. You and your tax professional can learn about the IRS's taxable reporting criteria for gambling winnings and Form W-2G used to report income related to gambling by visiting https://www.irs.gov/forms-pubs/about-form-w2g
In all instances where taxable reporting criteria has been met, DraftKings is required to remit backup withholding of 24% to the IRS in your name in the event the customer does not furnish a verified social Security Number (SSN) on IRS Form W-9 upon request.