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
You keep
$8,080
Cash at payout
$7,600
Total tax
$1,920
Over-withheld
$480
- Form W-2G
- Yes
- Federal withholding at payout
- $2,400
- Federal tax on the winnings
- $1,550
- State tax
- $370
- Over-withheld
- $480
- You keep
- $8,080
$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.
The payer holds back 24% of winnings over $5,000 and sends it to the IRS. It's a prepayment, not the final tax.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 22% bracket.
Arkansas taxes gambling winnings as ordinary income.
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.
$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.[2]Unverified
- 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).[3]
- Nonresidents
- Yes. Nonresidents with Arkansas-source income file Form AR1000NR, and winnings from Arkansas casinos go on that return.[2]
- Tax paid to other states
- Yes. Residents claim the Other State Tax Credit on Form AR1000TC for tax paid to another state.[2]
- Legal gambling
- Sports betting: legal online and in person. State lottery: yes. Casinos: yes. Online casino: not legal.[5]
Also worth knowing
- Arkansas lists 'Mississippi gambling taxes' among the taxes you can deduct on the itemized schedule (AR3 line 6).[2]
- 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.[6]
- 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.[7]
Examples by game
For a single filer with $60,000 of other income and no gambling losses, living and winning in Arkansas.
| Game | Won | Withheld | Federal tax | State tax | You 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.[2]Unverified
- 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).[3]
- 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.[2]
Arkansas by game
Sources
- [1] Arkansas Bureau of Legislative Research, SB1 fiscal impact (2026 First Extraordinary Session) · checked September 22, 2026
- [2] Arkansas 2025 AR1000F/AR1000NR Instructions (AR3 line 27) · checked September 22, 2026
- [3] A.C.A. 26-51-920 Casinos - Withholding and reporting · checked September 22, 2026
- [4] Arkansas Scholarship Lottery - Claim Your Prize · checked September 22, 2026
- [5] American Gaming Association, State of the States 2025 · checked September 22, 2026
- [6] Arkansas DFA Subject 208, Gambling Income and Expenses (rev. 2/24/2023) · checked September 22, 2026
- [7] A.C.A. 26-51-424 Gambling losses · checked September 22, 2026