Casino and slots winnings tax in Ohio
Ohio taxes slot machine winnings as ordinary income at graduated rates from 0% to 2.75%.
On a $5,000 slot machine win, $138 is withheld at payout. The tax comes to $738 ($600 federal and $138 Ohio), $600 of it due when you file, so you keep $4,263. That's for a single filer with $60,000 of other income and no gambling losses.
Updated · 2026 tax rules · How we calculate
You keep
$4,263
Cash at payout
$4,863
Total tax
$738
Due when you file
$600
- Form W-2G
- Yes
- Federal withholding at payout
- $0
- Federal tax on the winnings
- $600
- State tax
- $138
- Ohio withholding at payout
- $138
- Still to pay when you file
- $600
- You keep
- $4,263
$5,000 is at or above the $2,000 reporting threshold, so the payer files a W-2G with the IRS and gives you a copy.
Casino and slots 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.
Ohio taxes gambling winnings as ordinary income.
Ohio requires the payer to hold back 2.75% for state tax.
Tax owed ($738) minus what was withheld ($138). Set this aside. A large balance can also mean an underpayment penalty unless you make an estimated payment.
$5,000 minus $738 in federal and state tax: an effective rate of 14.8%.
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
- Ohio tax
- Ohio taxes slot machine winnings as ordinary income at graduated rates from 0% to 2.75%.[1]
- Federal tax form
- Slot machine and bingo winnings of $2,000 or more are reported on a W-2G, without subtracting the wager. The threshold was $1,200 before 2026. Keno is also $2,000, after subtracting the wager on the winning game.[2]
- Federal withholding
- Slot machine, keno and bingo winnings are exempt from regular gambling withholding by statute, whatever the amount.[4]
- Ohio withholding
- Ohio withholds 2.75% on slot machine winnings of $2,000 or more.[5]
- Gambling losses
- Ohio has no deduction for gambling losses. Its income tax starts from federal adjusted gross income, and the Department of Taxation says federal itemized deductions such as gambling losses can't be deducted on the Ohio return.[6] How the federal 90% loss rule works
- Visitors
- Ohio taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]
- Where to play
- Ohio has casinos.[9]
What you keep at different amounts
For a single filer with $60,000 of other income and no gambling losses, living and winning in Ohio.
| Won | W-2G | Withheld | Federal tax | State tax | You keep |
|---|---|---|---|---|---|
| $1,500 | No | $0 | $180 | $41 | $1,279 |
| $2,000 | Yes | $55 | $240 | $55 | $1,705 |
| $5,000 | Yes | $138 | $600 | $138 | $4,263 |
| $10,000 | Yes | $275 | $1,550 | $275 | $8,175 |
| $100,000 | Yes | $2,750 | $22,114 | $2,750 | $75,136 |
Records to keep for slot machine winnings
A slot jackpot is reported on its own, without subtracting what you put in the machine. Keno and bingo follow similar rules.
Losses only count if you can prove them. For slot machine winnings, the IRS suggests keeping:[10]
- Slot machines: the machine number, and all winnings by date and time you played it
- Keno: the keno tickets you bought, validated by the casino, and copies of your casino credit and check-cashing records
- Bingo: the number of games played, what you paid for tickets and what you collected on winning tickets, plus any receipts from the casino or bingo hall
The IRS proposed counting slot wins and losses per session (one casino, one calendar day) in Notice 2015-21, but never finalized it.[11]
All of this goes alongside the diary the IRS expects for every kind of gambling: keeping gambling records the IRS will accept.
Questions
- How much is Ohio tax on slot machine winnings?
- Ohio taxes slot machine winnings as ordinary income at graduated rates from 0% to 2.75%.[1]
- Does Ohio withhold tax from slot machine winnings?
- Ohio withholds 2.75% on slot machine winnings of $2,000 or more.[5]
- Do visitors pay Ohio tax on slot machine winnings?
- Ohio taxes nonresidents on slot machine winnings won there, so visitors may need to file a nonresident return.[7]
More for Ohio
All of Ohio's gambling tax rules · Casino and slots in every state
Sources
- [1] Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 · checked September 22, 2026
- [2] IRS, Instructions for Forms W-2G and 5754 (01/2026) · checked September 22, 2026
- [3] Federal Register, REG-113229-25 proposed rule (Apr. 17, 2026) · checked September 22, 2026
- [4] 26 U.S. Code § 3402 (withholding) · checked September 22, 2026
- [5] Ohio Rev. Code 5747.063 (as amended by HB 96, 136th GA) · checked September 22, 2026
- [6] Ohio Department of Taxation FAQ: Income - General Information · checked October 2, 2026
- [7] 2025 Ohio IT 1040 / SD 100 Instructions · checked October 2, 2026
- [8] Ohio Revised Code 5747.01 · checked October 2, 2026
- [9] Fox Sports, Where is sports betting legal? · checked September 22, 2026
- [10] IRS, Publication 529, Miscellaneous Deductions · checked September 28, 2026
- [11] IRS, Notice 2015-21 (slot machine sessions) · checked September 22, 2026