Fantasy sports winnings are usually not reported on IRS Form W-2G. That form is designed for reporting gambling winnings from activities like lotteries, casinos, and horse racing. Instead, fantasy sports are often treated as games of skill, which means the IRS may require different reporting methods. However, this does not mean your winnings are tax-free. All income from fantasy sports is taxable and must be reported on your tax return.
For more information about other gambling reporting requirements, see our guide on Form W-2G for Gambling Winnings.
How Are Fantasy Sports Winnings Reported?
Instead of Form W-2G, fantasy sports winnings are generally reported using:
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Form 1099-K – If your winnings are paid through a third-party payment processor (PayPal, Venmo, or a credit card), you may receive a 1099-K if your winnings exceed $600. See our article on Form 1099-K Changes.
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Form 1099-MISC – If the platform pays you directly (by check or direct deposit), they may issue a 1099-MISC when your winnings exceed $600. Learn more about Form 1099-MISC.
Even if you do not receive a tax form, your winnings are still taxable and must be included on your tax return.
Where to Report Fantasy Sports Winnings on Your Tax Return
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Casual players – Report winnings as “Other Income” on Schedule 1 (Form 1040), Line 8.
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Professional players – If you play fantasy sports as a business, report income and expenses on Schedule C (Form 1040).
For step-by-step details, see our guide on How the IRS Matches 1099 Forms to Tax Returns.
Can You Deduct Fantasy Sports Losses?
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Casual players – Losses cannot be deducted.
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Professional players – You may deduct related expenses (entry fees, internet costs, subscriptions) on Schedule C. However, these may still be subject to self-employment tax.
If you have additional gambling winnings, you may also want to read our breakdown of Form W-2G for Slot Machine Winnings.
Conclusion
Fantasy sports winnings are not reported on Form W-2G, but they may appear on Form 1099-K or Form 1099-MISC if the threshold of $600 is met. Regardless of whether you receive a tax form, all fantasy sports winnings are taxable income. Be sure to report them correctly to avoid IRS notices, penalties, or audits.
Need help filing correctly? Explore our 1099 filing software to make sure all your forms are submitted on time and error-free.