Rhode Island Sports Betting Tax Calculator
Rhode Island taxes gambling winnings as ordinary income at graduated brackets (varies by income). Sports betting is legal (online and retail) in Rhode Island with operators including Bally Bet (via RI Lottery). Rhode Island was one of the first states to legalize sports betting. Operated through the state lottery.
Calculate Your Rhode Island 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.
Rhode Island Gambling Tax Key Facts
- ✓State income tax: graduated brackets (varies by income)
- ✓Sports betting: legal (online and retail)
- ✓Available sportsbooks: Bally Bet (via RI Lottery)
- ✓Gambling loss deductions ARE allowed (must itemize)
- ✓5.99% top rate
How Sports Betting Taxes Work in Rhode Island
Rhode Island taxes gambling winnings as ordinary income through graduated tax brackets. Your gambling winnings are added to all other income and taxed accordingly.
Rhode Island 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.
Rhode Island Allows Gambling Loss Deductions
Rhode Island follows federal rules for gambling loss deductions. The 2026 OBBBA 90% cap applies when itemizing.
Rhode Island Tax Example
A single filer in Rhode Island earning $60,000 with $10,000 in sports betting winnings and no losses
Licensed Sportsbooks in Rhode Island
You must be physically located within Rhode Island to place bets on these platforms.
How Rhode Island Compares to Neighboring States
Recent Rhode Island Gambling Tax Changes
Rhode Island was one of the first states to legalize sports betting. Operated through the state lottery.
Rhode Island Sports Betting Tax FAQ
How much tax do I pay on sports betting winnings in Rhode Island?
Rhode Island 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 Rhode Island?
Yes, sports betting is legal (online and retail) in Rhode Island. Licensed operators include Bally Bet (via RI Lottery). You must be physically located within Rhode Island borders to place bets.
Can I deduct gambling losses in Rhode Island?
Yes, Rhode Island 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.
Rhode Island Tax Authority
For official tax guidance specific to Rhode Island, contact the state tax authority:
https://tax.ri.gov/↗Calculate Your Rhode Island Sports Betting Taxes
Use our free calculator above to see exactly what you owe in Rhode Island.
Full Tax Calculator