Yes, DraftKings will send you a tax form if your winnings cross an IRS reporting threshold, but for 2026 that threshold jumped from $600 to $2,000, so many players who used to receive one won’t this year.1Office of the Law Revision Counsel. 26 U.S. Code 6041 – Information at Source The form is either a W-2G (for large single-event wins) or a 1099-MISC (for cumulative Daily Fantasy Sports and promotional winnings). No form doesn’t mean no tax. Every dollar of gambling income is still taxable, whether DraftKings reports it or not.
When You Get a W-2G
A W-2G covers a single winning event. For a sports bet, DraftKings issues one when your net winnings (payout minus wager) are at least $2,000 and the payout is at least 300 times your wager.2Internal Revenue Service. Instructions for Forms W-2G and 5754 (01/2026) Both conditions have to be met.
Two examples make this concrete. A $2,100 payout on a $100 bet clears the dollar threshold but fails the 300-to-1 ratio, so no W-2G. A $2,100 payout on a $5 long-shot parlay is 420 times the wager, so it triggers the form.
Casino-style games on DraftKings use the same $2,000 floor, but the triggering rules differ by game. Slot and bingo jackpots, for instance, don’t require the 300-to-1 multiplier.2Internal Revenue Service. Instructions for Forms W-2G and 5754 (01/2026)
The form lists the winning amount, the date, the type of wager, and any federal tax that was withheld. You get a copy; the IRS gets a copy.
When You Get a 1099-MISC
Daily Fantasy Sports winnings are reported on a 1099-MISC instead of a W-2G, because the IRS treats DFS as contest income rather than a wager. DraftKings issues one when your net DFS earnings for the year exceed $2,000, meaning total winnings minus the entry fees you paid.1Office of the Law Revision Counsel. 26 U.S. Code 6041 – Information at Source If you collected $3,200 in winnings and paid $1,000 in entry fees, your $2,200 net crosses the line.
Promotional prizes and sweepstakes winnings of $2,000 or more also appear on a 1099-MISC. Non-cash prizes like trips or merchandise are valued at fair market value.3Internal Revenue Service. Topic No. 419, Gambling Income and Losses
Before 2026, this threshold was $600. If you’re used to a 1099-MISC from DraftKings for modest DFS activity, you may not get one this year even if nothing about your play has changed.
Whether Taxes Were Withheld
Getting a W-2G doesn’t automatically mean DraftKings withheld anything. Withholding kicks in at a higher bar than reporting. For sports bets and similar wagers, DraftKings must withhold federal income tax at 24% when net winnings exceed $5,000 and are at least 300 times the wager.4Office of the Law Revision Counsel. 26 USC 3402 – Income Tax Collected at Source For lottery-style sweepstakes and wagering pools, the 24% applies to any net winnings over $5,000 regardless of the payout ratio.2Internal Revenue Service. Instructions for Forms W-2G and 5754 (01/2026)
Backup withholding is a separate matter. If you haven’t given DraftKings a valid Social Security number or taxpayer ID, 24% comes off any payout amount.5Internal Revenue Service. Backup Withholding Keeping your tax info current avoids that.
Anything withheld shows on the form and credits against your annual tax bill, the same way paycheck withholding does. Overwithholding comes back as part of your refund.
How to Get Your Form From DraftKings
DraftKings must deliver W-2Gs and 1099-MISCs by January 31 of the year after your winnings. Forms for 2026 activity are due by January 31, 2027. Most users get an email when documents post.
To download them, log into the DraftKings app, tap your profile icon, open the Financial Center, and go to the Tax Center.6DraftKings. How Do I Opt in to Electronic-Only Delivery of Tax Forms (1099/W-2G) From DraftKings On desktop, the same forms live in the Document Center. Electronic-only delivery is the fastest route and avoids paper copies going to an old address.
If mid-February arrives with nothing, check the Document Center directly. Forms sometimes appear before the email notification. If nothing is posted, contact DraftKings support to confirm your winnings actually crossed the threshold and to verify your address on file.
Reporting Winnings When No Form Arrives
All gambling winnings are taxable, form or no form. That includes small sports-bet payouts, DFS wins below the threshold, bonus-bet winnings, and free-play prizes.3Internal Revenue Service. Topic No. 419, Gambling Income and Losses With the new $2,000 threshold, more winnings now fall below the form-issuance line, so self-reporting matters more than it used to.
Report gambling winnings on Schedule 1 (Form 1040), line 8b.7Internal Revenue Service. Schedule 1 (Form 1040) – Additional Income and Adjustments to Income Your DraftKings transaction history, downloadable from the app, is your record of wins and losses. Keep it. The IRS can request documentation for anything you report, and for anything you don’t.
Deducting Losses
Losses are deductible, but only if you itemize on Schedule A instead of taking the standard deduction, and only up to the amount of winnings you reported. Win $4,000 and lose $9,000, and you can deduct $4,000. The other $5,000 is gone for tax purposes.3Internal Revenue Service. Topic No. 419, Gambling Income and Losses
Itemizing only helps when your total itemized deductions beat the standard deduction. For 2026 that’s $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for head of household.8Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026, Including Amendments From the One Big Beautiful Bill Most casual users won’t clear that with gambling losses alone.
If you do itemize, the IRS expects records: date of each wager, amount won or lost, type of bet, and platform. Your DraftKings history covers most of this.
What Happens if You Skip It
Any form DraftKings files goes into the IRS matching system. If the income isn’t on your return, expect a notice. Even winnings below the reporting threshold can surface in an audit, since the IRS can subpoena DraftKings records regardless of whether a form was issued.
The penalties compound:
- Accuracy-related penalty: 20% of the underpaid tax for negligence or substantial understatement.9Office of the Law Revision Counsel. 26 U.S. Code 6662 – Imposition of Accuracy-Related Penalty on Underpayments
- Failure-to-file penalty: 5% of the unpaid tax per month the return is late, capped at 25%.10Internal Revenue Service. Failure to File Penalty
- Failure-to-pay penalty: 0.5% of the unpaid tax per month, also capped at 25%.
- Interest on any unpaid balance, at 7% for the first quarter of 2026.11Internal Revenue Service. Rev. Rul. 2025-22 – Determination of Rate of Interest
A $3,000 unreported win looks small until a 20% accuracy penalty, months of failure-to-pay charges, and 7% interest stack on top. Reporting upfront is cheaper than paying the IRS to catch it.
State Rules Can Be Different
Some states set their own reporting thresholds and withholding rules, and some are lower than the $2,000 federal floor. DraftKings has to follow the rules of the state where the wager was placed, so you may get a state tax document even when your winnings fall below the federal line. Check your state revenue agency, because these rules vary widely.