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Arkansas Sports Betting Tax Calculator

Arkansas taxes gambling winnings as ordinary income at graduated brackets (varies by income). Sports betting is legal (online and retail) in Arkansas with operators including BetSaracen, Caesars. Arkansas legalized sports betting in 2022. Online mobile betting launched in 2024.

Graduated
State Tax Rate
Legal
Sports Betting
Yes
Loss Deduction
2
Sportsbooks

Calculate Your Arkansas Sports Betting Tax

2026 rules: 90% loss deduction cap applies (OBBBA)

$

Your salary, wages, and other non-gambling income

$
$

Losses can only be deducted if you itemize deductions

You cannot deduct gambling losses with the standard deduction. Switch to itemized to deduct losses.

Your Take-Home from $10,000 in Winnings
$8,460
Total Tax: $1,540|Effective Rate: 15.4%

Tax Breakdown

Total Income (salary + winnings)$60,000
Standard Deduction-$16,100
Taxable Income$43,900
Federal Tax (12.0% marginal)$1,200
Arkansas State Tax$340
Total Tax on Gambling Winnings$1,540
Net Take-Home$8,460

W-2G Form: Likely Required

Your total winnings of $10,000 exceed the $2,000 W-2G threshold for 2026. Individual wins that also meet the 300:1 odds requirement may trigger a W-2G form. Use our W-2G Checker for precise results.

Federal Withholding

$2,400 (24%) would be withheld at the time of payout. You may be due a refund of $1,200.

Arkansas Gambling Tax Key Facts

  • ✓State income tax: graduated brackets (varies by income)
  • ✓Sports betting: legal (online and retail)
  • ✓Available sportsbooks: BetSaracen, Caesars
  • ✓Gambling loss deductions ARE allowed (must itemize)
  • ✓3% withholding on gambling winnings over $5,000

How Sports Betting Taxes Work in Arkansas

Arkansas taxes gambling winnings as ordinary income through graduated tax brackets. Your gambling winnings are added to all other income and taxed accordingly.

Arkansas allows gambling loss deductions following federal rules. Under the 2026 OBBBA, losses are deductible at 90% (capped at the amount of winnings) when itemizing deductions.

Arkansas Allows Gambling Loss Deductions

Arkansas follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.

Arkansas Tax Example

A single filer in Arkansas earning $60,000 with $10,000 in sports betting winnings and no losses

Salary Income$60,000
Gambling Winnings$10,000
Federal Tax on Winnings$2,200 (at the 22% marginal bracket)
Arkansas State Tax$500 (graduated brackets (varies by income))
Total Tax$2,700 combined federal + state
Net Take-Home$7,300 from $10,000 in winnings

Licensed Sportsbooks in Arkansas

BetSaracen
Caesars

You must be physically located within Arkansas to place bets on these platforms.

How Arkansas Compares to Neighboring States

TennesseeCompare Arkansas gambling tax rates with Tennessee
MissouriCompare Arkansas gambling tax rates with Missouri
LouisianaCompare Arkansas gambling tax rates with Louisiana

Recent Arkansas Gambling Tax Changes

Arkansas legalized sports betting in 2022. Online mobile betting launched in 2024.

Arkansas Sports Betting Tax FAQ

How much tax do I pay on sports betting winnings in Arkansas?

Arkansas taxes gambling winnings at graduated brackets (varies by income) on top of federal tax (10-37%). Your total combined tax rate depends on your income level and filing status.

Is sports betting legal in Arkansas?

Yes, sports betting is legal (online and retail) in Arkansas. Licensed operators include BetSaracen, Caesars. You must be physically located within Arkansas borders to place bets.

Can I deduct gambling losses in Arkansas?

Yes, Arkansas allows gambling loss deductions following federal rules. You must itemize deductions, and losses are limited to the amount of your winnings. The 2026 OBBBA 90% cap applies.

Arkansas Tax Authority

For official tax guidance specific to Arkansas, contact the state tax authority:

https://www.dfa.arkansas.gov/↗

Calculate Your Arkansas Sports Betting Taxes

Use our free calculator above to see exactly what you owe in Arkansas.

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