Skip to content
WinningsTax

Arkansas gambling winnings tax calculator

Arkansas taxes gambling winnings as ordinary income at graduated rates from 2% to 3.7%.

Updated · 2026 tax rules · How we calculate

$
$
$
$
More options
$

You keep

$8,080

Cash at payout

$7,600

Total tax

$1,920

Over-withheld

$480

Form W-2G
Yes

$10,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.

Federal withholding at payout
$2,400

The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.

Federal tax on the winnings
$1,550

Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.

State tax
$370

Arkansas taxes gambling winnings as ordinary income.

Over-withheld
$480

More was withheld than these winnings add to your tax. The difference reduces what you owe on the rest of your return, or comes back as a refund.

You keep
$8,080

$10,000 minus $1,920 in federal and state tax: an effective rate of 19.2%.

An estimate for 2026, not tax advice. It treats this win as your only gambling income for the year and leaves out local income taxes. Nothing you enter leaves your browser.

How Arkansas taxes gambling winnings

State income tax
Arkansas taxes gambling winnings as ordinary income at graduated rates from 2% to 3.7%.[1]
Gambling losses
You can deduct losses only when you itemize on Form AR3 (line 27), up to the gambling winnings you report. Arkansas's own law allows losses to the extent of winnings, so the federal 90% limit doesn't apply.[2] How the federal 90% loss rule works
Withholding
The Arkansas Scholarship Lottery withholds 3.7% on prizes over $5,000. Casinos withhold whenever federal withholding applies, at the lesser of 5.9% or the top income tax rate (3.7% for 2026).[5]
Nonresidents
Yes. Nonresidents with Arkansas-source income file Form AR1000NR, and winnings from Arkansas casinos go on that return.[3]
Tax paid to other states
Yes. Residents claim the Other State Tax Credit on Form AR1000TC for tax paid to another state.[3]
Legal gambling
Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[7]

Also worth knowing

  • Arkansas lists 'Mississippi gambling taxes' among the taxes you can deduct on the itemized schedule (AR3 line 6).[3]
  • Before July 1, 2019, winnings from Arkansas electronic games of skill carried a separate 3% flat tax. Since then, casino winnings and withholding go on the regular return.[4]
  • Arkansas's loss rule is in its own statute (A.C.A. 26-51-424): losses are deductible 'to the extent of gambling winnings' and aren't subject to the 2% floor.[8]

Examples by game

For a single filer with $60,000 of other income and no gambling losses, living and winning in Arkansas. Arkansas ranks 18th of 51 for what you keep from a $10,000 sports bet, and 18th of 51 for a $1 million lottery prize. See every state ranked.

GameWonWithheldFederal taxState taxYou keep
Sports betting$10,000$2,400$1,550$370$8,080
Casino and slots$5,000$0$600$185$4,215
Table games$5,000$0$600$185$4,215
Poker tournaments$20,000$0$3,750$740$15,510
Lottery$50,000$13,850$10,350$1,850$37,800
Daily fantasy sports$5,000$0$600$185$4,215
Horse racing$8,000$1,920$1,110$296$6,594

Questions

Does Arkansas tax gambling winnings?
Yes, at graduated rates from 2% to 3.7%.[1]
Can you deduct gambling losses in Arkansas?
You can deduct losses only when you itemize on Form AR3 (line 27), up to the gambling winnings you report. Arkansas's own law allows losses to the extent of winnings, so the federal 90% limit doesn't apply.[2]
Does Arkansas withhold tax from gambling winnings?
The Arkansas Scholarship Lottery withholds 3.7% on prizes over $5,000. Casinos withhold whenever federal withholding applies, at the lesser of 5.9% or the top income tax rate (3.7% for 2026).[5]
Do nonresidents pay Arkansas tax on gambling winnings?
Yes. Nonresidents with Arkansas-source income file Form AR1000NR, and winnings from Arkansas casinos go on that return.[3]

Arkansas by game

Gambling across the border from Arkansas

Win in a neighboring state and both states can tax it: the state you won in as a visitor, and Arkansas as your home state, usually with a credit for the tax you paid there.

StateTop rateVisitors taxed
Louisiana3%[9]Taxed[10]
Missouri4.7%[9]Taxed[11]
Mississippi4%[9]Taxed[12]
Oklahoma4.5%[13]Taxed[14]
TennesseeNo income tax[9]No
TexasNo income tax[9]No

Sources

  1. [1] Arkansas Bureau of Legislative Research, SB1 fiscal impact (2026 First Extraordinary Session) · checked September 22, 2026
  2. [2] Arkansas Act 155 of 2017, § 21 (amending Ark. Code § 26-51-424) · checked October 2, 2026
  3. [3] Arkansas DFA, 2025 AR1000F/AR1000NR Instructions (Form AR3) · checked October 2, 2026
  4. [4] Arkansas DFA, Subject 208: Gambling Income and Expenses · checked October 2, 2026
  5. [5] A.C.A. 26-51-920 Casinos - Withholding and reporting · checked September 22, 2026
  6. [6] Arkansas Scholarship Lottery - Claim Your Prize · checked September 22, 2026
  7. [7] American Gaming Association, State of the States 2025 · checked September 22, 2026
  8. [8] A.C.A. 26-51-424 Gambling losses · checked September 22, 2026
  9. [9] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
  10. [10] LDR FAQ: Texas resident who won at a Louisiana casino · checked September 22, 2026
  11. [11] RSMo 143.181 - Missouri source income of nonresidents · checked September 22, 2026
  12. [12] MS DOR 2025 Form 80-100 Resident, Non-Resident and Part-Year Resident Income Tax Instructions · checked September 22, 2026
  13. [13] Oklahoma Tax Commission, 2025 Legislative Update · checked September 22, 2026
  14. [14] 2025 Oklahoma Form 511-NR Packet (Oklahoma Tax Commission) · checked September 22, 2026