Daily fantasy sports winnings tax in Arkansas
Arkansas taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 3.7%.
Updated · 2026 tax rules · How we calculate
You keep
$4,215
Cash at payout
$5,000
Total tax
$785
Due when you file
$785
- Form 1099-MISC
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $185
- Still to pay when you file
- $785
- You keep
- $4,215
Daily fantasy sites report net winnings of $2,000 or more for the year on a 1099-MISC.
Daily fantasy sports winnings aren't subject to regular federal withholding, whatever the amount. Tax is still owed when you file. If you don't give the payer your Social Security number, 24% backup withholding applies.
Winnings are ordinary income stacked on your other $60,000. Your top dollar lands in the 12% bracket.
Arkansas taxes gambling winnings as ordinary income.
Tax owed ($785) minus what was withheld ($0). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $785 in federal and state tax: an effective rate of 15.7%.
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.
The rules
- Arkansas tax
- Arkansas taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 3.7%.[1]
- Federal tax form
- Daily fantasy sites generally report net winnings of $2,000 or more for the year on Form 1099-MISC, not a W-2G. The 1099-MISC threshold was $600 before 2026.[2]Unverified
- Federal withholding
- Fantasy sites don't withhold federal tax from winnings in practice.[2]Unverified
- Arkansas withholding
- No Arkansas withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Gambling losses
- You can deduct losses only when you itemize on Form AR3 (line 27), up to the gambling winnings you report.[5]Unverified
- Visitors
- Arkansas taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Arkansas.
| Won | 1099-MISC | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $56 | $1,265 |
| $2,000 | Yes | $0 | $240 | $74 | $1,686 |
| $5,000 | Yes | $0 | $600 | $185 | $4,215 |
| $10,000 | Yes | $0 | $1,550 | $370 | $8,080 |
| $100,000 | Yes | $0 | $22,114 | $3,700 | $74,186 |
Questions
- How much is Arkansas tax on daily fantasy winnings?
- Arkansas taxes daily fantasy winnings as ordinary income at graduated rates from 2% to 3.7%.[1]
- Does Arkansas withhold tax from daily fantasy winnings?
- Arkansas has no withholding requirement for daily fantasy winnings. Tax is due when you file.[3]
- Do visitors pay Arkansas tax on daily fantasy winnings?
- Arkansas taxes nonresidents on daily fantasy winnings won there, so visitors may need to file a nonresident return.[5]
More for Arkansas
All of Arkansas's gambling tax rules · Daily fantasy sports in every state
Sources
- [1] Arkansas Bureau of Legislative Research, SB1 fiscal impact (2026 First Extraordinary Session) · checked September 22, 2026
- [2] IRS, Instructions for Forms 1099-MISC and 1099-NEC (2026) · 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] Arkansas 2025 AR1000F/AR1000NR Instructions (AR3 line 27) · checked September 22, 2026