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Crypto gambling taxes

Players can face the tax implications of crypto gambling before any win pays out. We handle crypto gambling taxes on both sides: any gain or loss on coins wagered and the income from each win.

Are crypto gambling winnings taxable?

  • Winnings paid in coins

    Yes. The IRS taxes all gambling winnings as income, including wins that do not appear on a Form W-2G. The player reports a payout in coins at its fair market value in dollars when received. That dollar value becomes the player's basis in the coins won. We measure any later sale or swap of those coins from that figure.

  • Gain or loss on coins wagered

    A player can realize a capital gain or loss when wagering coins. The IRS treats digital assets exchanged for property or services as disposed of, but a transfer between wallets the player owns is not taxed.

Example, assuming the IRS treats the wager as a disposal of the coins:

  • Bought for $5,000 and wagered when worth $7,000: a $2,000 capital gain on Form 8949.

  • The wager lost: a $7,000 gambling loss, subject to the 2026 loss limits.

Bitcoin gambling tax reporting

A casual player reports winnings on Schedule 1, line 8b, and gains or losses on the coins on Form 8949. A professional gambler reports on Schedule C.

A casual player who itemizes claims gambling losses on Schedule A as an other itemized deduction. The deduction cannot exceed the gambling winnings reported for the year.

Reporting a crypto bet, form by form

For players who do not gamble as a business

  1. Gain or loss on the coins

    If disposed of at the wager: dollar value then, minus what the coins cost

    Form 8949
  2. Gambling income

    Coins counted at their dollar value when received, with or without a Form W-2G

    Schedule 1, line 8b
  3. Itemized deduction

    Only up to winnings; from 2026, no more than 90 percent of losses

    Schedule A, gambling losses
  4. Gain or loss on the winnings

    Measured from the dollar value when the coins were won

    Form 8949

Crypto casino taxes we handle

  • Casino and wallet records.

    We match each deposit and withdrawal to the wallet that sent or received it, and flag deposits the casino converted on arrival.

  • Winnings in dollars.

    We price each payout on the day received, then calculate the tax on crypto gambling winnings and the basis of the coins won.

  • Coins staked.

    We calculate the gain or loss on each coin disposed of at a wager and report it with other trades under our cryptocurrency tax services.

  • Losses and the 90 percent cap.

    We tie each loss to a session record and apply the 2026 limit before we claim a Schedule A deduction.

Records to send

  1. Casino history.

    Send the full export of deposits, bets, wins and withdrawals for the year.

  2. Wallet and exchange records.

    Send purchase records for each coin sent to the casino to prove its cost.

  3. Session diary.

    Keep the date, platform, amount staked and result for each session, as the IRS expects.

  4. Cash outs.

    Send exchange records for coins moved off the casino and sold or swapped, with dates and amounts.

  5. Tax forms.

    Send any Form W-2G, Form 1099-DA or other tax form received for the year.

I was looking for an accountant that knew how to handle crypto and other non-traditional financial circumstances across my accounts and businesses.

Gabe CohenGoogle review

Cost of crypto gambling tax help

We quote a fixed fee before work starts, based on:

  • Casino transactions. The number of deposits, bets, wins and withdrawals in the year.
  • Aggregator report. Without one, we match trades by hand, which raises the fee.
  • The return. We prepare one individual tax return for the gambling income and crypto sales.

The lightest file is one casino and one wallet, with an aggregator report in hand. These are the factors, not a quote.

For winnings paid only in dollars, we apply the standard gambling income tax rules.

Crypto gambling taxes from a CPA

Send the casino export and wallet records, and a CPA confirms how crypto gambling taxes apply to the year before anything is filed.