What are the W-2G reporting and withholding thresholds on my DraftKings Sportsbook and Casino winnings?

Winnings that meet certain state or federal thresholds must be reported by DraftKings to the IRS for tax purposes. There may be tax withheld from your winnings, depending on how much you’ve won, and what game you were playing. 

Important notes

  • The tax reporting and withholding thresholds listed below are based on the federal IRS requirements. Individual US states may have their own reporting and withholding rules. The information provided on this page doesn’t constitute tax advice and DraftKings advises its customers to consult with a professional when preparing their taxes.
  • If a player meets the reportable thresholds and doesn’t have a valid IRS Form W-9 on file with DraftKings, DraftKings will withhold 24% of reportable winnings. This is classified as Backup withholding.  
  • If a player has multiple payouts meeting these criteria in the same day for the same game type, this activity will be aggregated into a single W-2G.
  • For Oregon activity, please contact the DraftKings Customer Support team as the information in this article may not apply to you. 

General tax thresholds for reporting and withholding:

  • Slot games and Video Poker:
    • Reporting if gross winnings ≥ $1,200 (not reduced by wager)
  • Keno games:
    • Reporting if net winnings ≥ $1,500
  • Sportsbook, Casino Table and Live Dealer games:
    • Reporting if net winnings ≥ $600 and odds ≥ 300:1 (+30000)
    • 24% withholding if net winnings ≥ $5,000 and odds ≥ 300:1
  • Sweepstakes, Paid Pools, and Lotteries:
    • Reporting if net winnings ≥ $600 and are at least 300 times the amount wagered
    • 24% withholding if net winnings ≥ $5,000

Learn more about what winnings are reported to the IRS for Fantasy Sports.

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