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Connecticut Sports Betting Tax Calculator

Connecticut taxes gambling winnings as ordinary income at graduated brackets (varies by income). Sports betting is legal (online and retail) in Connecticut with operators including FanDuel, DraftKings. Sports betting launched October 2021. Limited to two operators through tribal compacts.

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

Calculate Your Connecticut 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
$8,250
Total Tax: $1,750|Effective Rate: 17.5%

Tax Breakdown

Total Income (salary + winnings)$60,000
Standard Deduction-$16,100
Taxable Income$43,900
Federal Tax (12.0% marginal)$1,200
Connecticut State Tax$550
Total Tax on Gambling Winnings$1,750
Net Take-Home$8,250

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.

Connecticut Gambling Tax Key Facts

  • State income tax: graduated brackets (varies by income)
  • Sports betting: legal (online and retail)
  • Available sportsbooks: FanDuel, DraftKings
  • Gambling loss deductions ARE allowed (must itemize)
  • 6.99% withholding on gambling winnings

How Sports Betting Taxes Work in Connecticut

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

Connecticut 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.

Connecticut Allows Gambling Loss Deductions

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

Connecticut Tax Example

A single filer in Connecticut 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)
Connecticut 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 Connecticut

FanDuel
DraftKings

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

How Connecticut Compares to Neighboring States

New YorkCompare Connecticut gambling tax rates with New York
New JerseyCompare Connecticut gambling tax rates with New Jersey
MassachusettsCompare Connecticut gambling tax rates with Massachusetts

Recent Connecticut Gambling Tax Changes

Sports betting launched October 2021. Limited to two operators through tribal compacts.

Connecticut Sports Betting Tax FAQ

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

Connecticut 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 Connecticut?

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

Can I deduct gambling losses in Connecticut?

Yes, Connecticut 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.

Connecticut Tax Authority

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

https://portal.ct.gov/drs

Calculate Your Connecticut Sports Betting Taxes

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

Full Tax Calculator