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See also: irs publication 529 misc. Deductions or irs publication 525 taxable & nontaxable income. Reporting gambling income and losses on your tax return. This distinction is that someone who wins money or a prize on a game show may not deduct his gambling losses against this income (irs, 2009). If you incurred gambling losses, you may be able to include these losses as itemized deductions on your tax return. You must have well-documented written. Can i deduct my gambling losses in wisconsin? Deducting large gambling losses can also raise red flags at the irs. Remember, casual gamblers can only claim losses as itemized deductions on schedule a up to. Can i claim my gambling expenses? professional gamblers must report their gambling income and losses on a schedule c form with their tax return, just like any Most times, these codes are visible across the start-up page, signup page, or the unique promo segment for the corresponding casino. 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