This includes winning bets that have not been withdrawn from your online betting account. Your winnings must be included on your tax return regardless if a W-2G tax form is issued by the casino. What if you did not receive Form W-2G or Form 1099 from the gambling operator? You are still responsible for paying taxes on your winnings. Furthermore, the tax on Arizona gambling winnings will range from 2.59% to 4.50% depending on which income bracket you fall into 1: Income Bracket (Single) Arizona Gambling Tax RatesĪccording to the Arizona Department of Revenue, there are four tax brackets that state residents should be aware of. How much you are taxed for your retail or online gambling winnings is based on your income bracket. There is a tax on Arizona gambling winnings in the state, which includes online casinos and sports betting, mobile gaming apps, and land-based casinos. For some, the different tax rates or thresholds for declaring gambling winnings in Arizona can be confusing.įortunately, we’ve simplified this process by breaking down everything Arizonans need to know to pay their taxes on retail or online gambling winnings. It’s important to note the two branches of Arizona’s gaming industry because there are different criteria for declaring gambling winnings with each branch. However, Arizona sports betting online or in-person didn’t become legal until April 2021, when Governor Doug Ducey signed HB2772 into law. Casino gambling was first legalized in Arizona back in 1988, with the passing of the Indian Gaming Regulatory Act.

Alabama gambling winnings tax