Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Gambling Income

What it is:

Gambling income is any money that is earned from games of chance.

How it works (Example):

Income from gambling is taxable money earned from games such as lotteries and keno or from institutions such as casinos or racetracks. 

For example, someone plays a state lottery and wins $1 million. This is gambling income and is taxable. Similarly, someone who wins $1000 at a casino’s roulette table is required to pay tax.

Why it Matters:

Gambling income is considered by tax authorities to be no different from any other taxable income and must be reported and assessed. 

Related Terms View All
  • Auction Market
    Though most of the trading is done via computer, auction markets can also be operated via...
  • Best Execution
    Let's assume you place an order to buy 100 shares of Company XYZ stock. The current quote...
  • Book-Entry Savings Bond
    Savings bonds are bonds issued by the U.S. government at face values ranging from $50 to...
  • Break-Even Point
    The basic idea behind break-even point is to calculate the point at which revenues begin...
  • Calendar Year
    If Company XYZ starts its fiscal year on January 1 and ends its fiscal year on December...