Gambling winnings are taxable in Louisiana. The Louisiana state tax on gambling winnings is a flat 3% state income tax (effective January 2025), and the same winnings are also subject to federal income tax. This guide explains the rates, the W-2G reporting thresholds, federal withholding, and what changed for loss deductions. It is general information, not tax advice.
How much tax for gambling winnings in Louisiana?
Louisiana applies a flat 3% state income tax to gambling winnings on top of federal tax. Payers issue a Form W-2G once a payout crosses set thresholds (for example $1,200 from slots), and federal withholding can apply to larger prizes. You report all winnings as income even when no W-2G is issued.
The Louisiana gambling winnings tax rate
Since January 2025, Louisiana taxes individual income at a flat 3% rate. Gambling winnings count as taxable income, so that 3% applies to them. This replaced the older tiered brackets that previously ran up to roughly 4.25%.
That state rate is separate from federal tax. Your federal liability depends on your total income and bracket, while Louisiana takes its flat 3% share. For the current figures, check the Louisiana Department of Revenue at revenue.louisiana.gov.
This page is informational and not tax or legal advice. Tax rules change and individual situations differ. Confirm current rates and filing duties with the Louisiana Department of Revenue (revenue.louisiana.gov), the IRS, or a licensed tax professional before you file.
Louisiana state tax on gambling winnings vs federal tax
Two layers of tax can apply to the same prize. The federal government treats gambling winnings as ordinary income, and Louisiana adds its flat 3%. Knowing which layer is which helps you read your W-2G and plan for what you owe.
| Layer | Rate | Applies to |
|---|---|---|
| Louisiana state income tax | 3% flat (since Jan 2025) | All taxable gambling winnings reported by LA residents |
| Federal income tax | Your federal bracket | All gambling winnings as ordinary income |
| Federal backup withholding | 24% (when triggered) | Certain large or unidentified payouts |
W-2G reporting thresholds
A casino or operator issues IRS Form W-2G when a single payout hits a federal threshold. The W-2G reports the win to the IRS and to you, and a copy informs your Louisiana return as well. The thresholds depend on the game.
| Game type | W-2G threshold | |
|---|---|---|
| Slot machines and bingo | $1,200 or more | |
| Keno | $1,500 or more (net of wager) | |
| Poker tournaments | $5,000 or more (net of buy-in) | |
| Other wagers (e.g. sports, table-game side bets) | $600 or more and at least 300x the wager |
Hitting a threshold does not mean tax was already paid in full. The W-2G documents the win; you still report it and settle both the federal and Louisiana 3% amounts on your returns.
Legal claims on this page rely on official sources. Louisiana gaming is regulated by the Louisiana Gaming Control Board (LGCB) and enforced with the Louisiana State Police Gaming Enforcement Division. Illegal gambling is addressed under La. R.S. 14:90, viewable at legis.la.gov. Tax rates come from the Louisiana Department of Revenue.
Federal withholding on large prizes
For some payouts the payer withholds federal tax before you are paid. Regular federal gambling withholding of 24% generally applies when winnings exceed $5,000 and are more than 300 times the wager (the rule covers sweepstakes, certain pools, and similar wagers). Backup withholding at 24% can also apply if you do not provide a valid taxpayer ID.
Withholding is a prepayment, not a final bill. When you file, the withheld amount is credited against what you actually owe federally, and you reconcile your Louisiana 3% separately.
No loss deduction in Louisiana since 2021
Federally, taxpayers who itemize can deduct gambling losses up to the amount of their winnings. Louisiana is different: the state eliminated the gambling-loss deduction in 2021. That means for your Louisiana return, the flat 3% applies to winnings without offsetting losses.
Keep your own records regardless. Session logs, W-2G copies, and bank records support your federal itemized deduction and help you report Louisiana winnings accurately. Confirm specifics with the Louisiana Department of Revenue.
What counts as taxable winnings
The same tax treatment applies across Louisiana's regulated gaming. Whether the prize comes from a riverboat, a racino, a tribal casino, or licensed sports betting, the winnings are reportable income.
- Caesars New Orleans, the only land-based casino, plus the roughly 15 riverboats and 4 racinos.
- The four tribal casinos: Coushatta in Kinder, Paragon in Marksville, Cypress Bayou in Charenton, and Jena Choctaw.
- Regulated online sports betting, legal in 55 of 64 parishes and live since January 2022 under the LGCB, offered through the state's LGCB-licensed mobile sportsbook apps.
For a full breakdown of the state's venues, see our guide to casinos in Louisiana.
Online play and how it is taxed
Real-money online casinos and online slots are not state-licensed in Louisiana. Offshore sites accept Louisiana players but are unregulated, so they should never be treated as legal or licensed in Louisiana. If you win money anywhere, those winnings remain taxable income to you regardless of where the site operates.
Dual-currency sweepstakes casinos were deemed illegal in a July 2, 2025 Louisiana Attorney General opinion, and several brands exited the state; pure social games with Gold Coins and no redemption appear permitted, though that is not an explicit ruling. For context on the legal landscape, see our overview of online casinos in louisiana.
Worked example: how the numbers add up
Suppose a Louisiana resident hits a $2,000 slot jackpot. Because the payout is $1,200 or more, the casino issues a W-2G. The full $2,000 is reportable income on both the federal and Louisiana returns.
On the Louisiana side, the flat 3% applies, so roughly $60 is owed to the state on that win. Federally, the $2,000 is added to ordinary income and taxed at the filer's bracket. If federal withholding was taken at the slot machine, it counts as a prepayment and is reconciled at filing. Because Louisiana no longer permits a loss deduction, any losing spins that day do not reduce the $2,000 figure for state purposes.
The example is illustrative only. Your actual liability depends on total income, deductions, and current rates published by the Louisiana Department of Revenue and the IRS.
Recordkeeping that protects you
Good records make filing accurate and defensible. The IRS expects a contemporaneous log of gambling activity, and Louisiana reporting flows from the same data. Keep enough detail to tie each win and loss to a date and place.
- A session log noting the date, location or platform, game type, and amounts won and lost.
- Every W-2G and any Form 5754 you receive when a prize is shared.
- Bank and card statements, casino win/loss statements, and tournament receipts.
- Records for offshore or out-of-state play, since those winnings are still reportable.
For federal purposes, this documentation supports an itemized loss deduction up to your winnings. For Louisiana, it ensures you report the correct gross winnings even though the state allows no loss offset.
Common mistakes to avoid
The frequent errors are predictable, and most cost money. Assuming a W-2G means the tax is settled is the biggest one, because the form only reports the win. Equally common is omitting smaller winnings that never generated a W-2G but are still taxable.
Filers also forget that Louisiana dropped the loss deduction in 2021, so they wrongly net losses against wins on the state return. Treating offshore play as untaxed is another error; the location of the operator does not change your reporting duty. When in doubt, ask a licensed professional rather than guess.
Filing your Louisiana return
Report gambling winnings on your federal Form 1040 and on your Louisiana resident return. Attach or reference any W-2G forms you received, and include winnings even when no W-2G was issued. Louisiana applies its flat 3% to that income.
Nonresidents who win in Louisiana may have a Louisiana filing obligation as well. Because withholding is only a prepayment and the state no longer allows a loss deduction, run the numbers before assuming you are square. The Louisiana Department of Revenue publishes the current forms, schedules, and filing instructions you should follow.
Plan ahead
- Save every W-2G and keep your own win/loss log.
- Set aside roughly 3% for Louisiana plus your federal share.
- Remember withholding is a credit, not the final amount.
Watch out for
- No Louisiana loss deduction since 2021.
- Winnings without a W-2G are still taxable.
- Offshore sites are unregulated and not licensed in Louisiana.
You must be 21 or older to gamble in Louisiana. If gambling stops being fun, help is free and confidential: call 1-800-GAMBLER or the Louisiana helpline at 1-877-770-STOP. Set deposit and time limits, and never wager money you cannot afford to lose.
Bottom line on the louisiana gambling winnings tax: winnings are taxable, the state rate is a flat 3%, federal tax applies on top, W-2G thresholds trigger reporting, and Louisiana no longer lets you deduct losses. Verify the details for your situation with the Louisiana Department of Revenue or a tax professional.
Frequently Asked Questions
What is the Louisiana state tax on gambling winnings?
Louisiana applies a flat 3% state income tax to gambling winnings, effective January 2025. That is separate from federal income tax, which also applies. Confirm the current rate with the Louisiana Department of Revenue.
How much tax for gambling winnings in Louisiana overall?
You generally owe Louisiana's flat 3% on the winnings plus federal income tax at your bracket. Large prizes can also have 24% federal withholding taken upfront, which is later credited against what you owe. This is general information, not tax advice.
What are the W-2G reporting thresholds?
A payer issues Form W-2G at $1,200 or more from slots or bingo, $1,500 or more from keno (net of wager), $5,000 or more from a poker tournament (net of buy-in), or $600 or more on other wagers paying at least 300 times the stake.
Can I deduct gambling losses in Louisiana?
No. Louisiana eliminated the gambling-loss deduction in 2021, so the state's 3% applies to winnings without offsetting losses. Federally, itemizers may still deduct losses up to the amount of winnings.
Do I owe tax if I did not get a W-2G?
Yes. All gambling winnings are taxable income whether or not a W-2G was issued. Keep your own records and report the full amount on your federal and Louisiana returns.
Are winnings from offshore online casinos taxable in Louisiana?
Yes, winnings are taxable income to you regardless of where the site operates. Note that real-money online casinos are not state-licensed in Louisiana, and offshore sites are unregulated, so they are not legal or licensed in Louisiana.
Who regulates gambling in Louisiana?
The Louisiana Gaming Control Board (LGCB) regulates gaming, with enforcement support from the Louisiana State Police Gaming Enforcement Division. Illegal gambling falls under La. R.S. 14:90, available at legis.la.gov.
What is the minimum gambling age and where can I get help?
You must be 21 or older to gamble in Louisiana. For free, confidential support, call 1-800-GAMBLER or the Louisiana helpline at 1-877-770-STOP.
Editorial note: This page is reviewed for accuracy, legal clarity, bonus transparency, and responsible gambling information. Louisiana gambling laws and operator availability can change, so all legal and promotional details should be verified before publication.