Delaware Sports Betting Tax Calculator
Delaware taxes gambling winnings as ordinary income at graduated brackets (varies by income). Sports betting is legal (retail only) in Delaware with operators including Delaware Lottery Sports. One of the first states to offer sports betting (2018). Retail only through state lottery.
Calculate Your Delaware 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.
Tax Breakdown
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.
Delaware Gambling Tax Key Facts
- ✓State income tax: graduated brackets (varies by income)
- ✓Sports betting: legal (retail only)
- ✓Available sportsbooks: Delaware Lottery Sports
- ✓Gambling loss deductions ARE allowed (must itemize)
- ✓State lottery winnings exempt from state tax
How Sports Betting Taxes Work in Delaware
Delaware taxes gambling winnings as ordinary income through graduated tax brackets. Your gambling winnings are added to all other income and taxed accordingly.
Delaware 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.
Delaware Allows Gambling Loss Deductions
Delaware follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.
Delaware Tax Example
A single filer in Delaware earning $60,000 with $10,000 in sports betting winnings and no losses
Licensed Sportsbooks in Delaware
You must be physically located within Delaware to place bets on these platforms.
How Delaware Compares to Neighboring States
Recent Delaware Gambling Tax Changes
One of the first states to offer sports betting (2018). Retail only through state lottery.
Delaware Sports Betting Tax FAQ
How much tax do I pay on sports betting winnings in Delaware?
Delaware 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 Delaware?
Yes, sports betting is legal (retail only) in Delaware. Licensed operators include Delaware Lottery Sports. You must be physically located within Delaware borders to place bets.
Can I deduct gambling losses in Delaware?
Yes, Delaware 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.
Delaware Tax Authority
For official tax guidance specific to Delaware, contact the state tax authority:
https://revenue.delaware.gov/↗Calculate Your Delaware Sports Betting Taxes
Use our free calculator above to see exactly what you owe in Delaware.
Full Tax Calculator