Can I claim taxes back on gambling winnings in the US?
It depends. Some nonresident visitors can claim back tax withheld on US gambling winnings, while others may not qualify. Your eligibility depends on your country of tax residence, the type of gambling, and any applicable IRS rules or tax treaty.
Published on: August 25, 2026
Written by: Clark Stott
In this article
Can tourists claim taxes back on gambling winnings in the US?
Yes, some tourists can claim a refund of US tax withheld on gambling winnings by filing Form 1040-NR. Eligibility generally depends on whether their home country has an applicable US income tax treaty or whether the winnings are exempt from withholding under IRS rules. Without a treaty benefit or exemption, the 30% federal withholding is generally final.
How are gambling winnings taxed in the US?
For nonresident tourists, most taxable US gambling winnings are generally subject to a 30% federal withholding tax on the gross winnings unless a tax treaty or another IRS exemption applies. Where withholding applies, casinos will generally issue Form 1042-S showing the winnings and any federal tax withheld.
For US citizens and Green Card holders, casinos and other payers generally withhold 24% from certain gambling winnings for federal income tax purposes. This is a withholding amount rather than your final tax liability. When the reporting requirements are met, the payer will generally issue Form W-2G to both you and the IRS.
How do I claim my US gambling tax back from the IRS?
There are two ways:
- Getting a tax refund: If you find that too much tax was withheld because you had significant losses, or your total income ended up in a lower bracket, you can claim a refund when you file your US tax return. This is just like when too much tax is withheld from your paycheck.
- Offset your gambling winnings with gambling losses (if eligible): If you incurred gambling losses, you can offset them up to the amount of your winnings. So, if you lost more than you won, you can’t deduct the excess losses. This can only be done if you itemize deductions on your tax return; if you take the standard deduction, you cannot deduct gambling losses at all.
How can foreign nationals or tourists claim taxes back on gambling winnings?
Tourists generally need to file a nonresident alien tax return (Form 1040-NR) to report their gambling winnings and claim a refund of taxes withheld by the casino.
The IRS also provides an Interactive Tax Assistant that helps nonresident aliens determine whether their gambling winnings qualify for an exemption under an applicable tax treaty.
When can a tourist claim a refund of US gambling tax?
|
Situation |
Possible refund? |
|
Eligible under an applicable US income tax treaty |
Usually yes |
|
Canadian resident qualifying under the US-Canada tax treaty |
Often yes |
|
Too much tax withheld |
Possibly |
|
No applicable treaty benefit or other exception |
Generally no |
Here is the current list of countries whose residents may qualify for treaty benefits relating to US gambling winnings:
- Austria
- Belgium
- Bulgaria
- Czech Republic
- Denmark
- Finland
- France
- Germany
- Iceland
- Ireland
- Italy
- Japan
- Latvia
- Lithuania
- Luxembourg
- Netherlands
- Slovak Republic
- Slovenia
- South Africa
- Spain
- Sweden
- Tunisia
- Turkey
- Ukraine
- United Kingdom
Exceptions
- Canada: The US-Canada tax treaty does not provide a general exemption. Instead, eligible Canadian residents may be able to offset gambling winnings with gambling losses when filing Form 1040-NR.
- Malta: Residents of Malta are generally subject to a 10% tax rate on gambling winnings under the applicable treaty rather than a full exemption.
- Australia and New Zealand: Although both countries have US tax treaties, their treaties do not provide an exemption for US gambling winnings.
- Hungary and Russia: No longer eligible for treaty benefits on US gambling winnings because of changes to their respective US tax treaty status.
Important: If you’re a nonresident alien and not a professional gambler, winnings from blackjack, baccarat, craps, roulette, and the big-6 wheel are generally exempt from US federal income tax, even if your country does not have an applicable gambling treaty exemption.
How to file a nonresident alien tax return
Here are the steps to file a nonresident alien tax return and claim a refund of US gambling tax:
Step 1: Gather your documents. This generally includes Form 1042-S, which reports your gambling winnings and any federal tax withheld. If you’re applying for an ITIN for the first time, you’ll also need documents to verify your identity.
Step 2: Obtain an Individual Taxpayer Identification Number (ITIN). If you’re not eligible for a Social Security Number (SSN), you can generally apply for an ITIN by submitting Form W-7 with your first tax return.
Step 3: Complete Form 1040-NR. This is the official US tax return for nonresident aliens. Depending on your situation, you may also need to complete Schedule NEC to report your gambling winnings.
Step 4: Submit your tax return. If you’re applying for an ITIN, attach Form W-7 and the required supporting documents to your tax return. Include Form 1042-S and any other documents needed to support your refund claim.
What is the purpose of an ITIN?
An Individual Taxpayer Identification Number (ITIN) is issued to individuals who must meet US tax filing obligations but are not eligible for a Social Security Number (SSN).
Foreign nationals and tourists generally need an ITIN to file a nonresident alien tax return and claim any eligible tax refund from the IRS.
How can a non-US citizen get an ITIN?
Non-US citizens will need to complete Form W-7, the formal application for an ITIN, along with verified identity documents such as their foreign passport or driver’s license.
Form W-7 is generally attached to the front of Form 1040-NR and submitted with the required identity documents. The IRS currently advises applicants to allow seven weeks, or nine to eleven weeks during peak periods or when applying from overseas, to receive an ITIN decision.
Frequently Asked Questions
What is a US tax treaty?
A US tax treaty is an agreement between the US and another country that determines how certain types of income are taxed to help prevent double taxation. Whether gambling winnings qualify for treaty benefits depends on the specific provisions of the applicable treaty.
Why are other tax treaty countries not eligible for a tax refund?
Every tax treaty is different. Having a tax treaty with the US does not automatically mean gambling winnings qualify for reduced tax or a refund. You should review the treaty provisions relating to gambling income to determine whether any benefits are available.
What happens if I missed the Form 1040-NR filing deadline?
The answer should explain late filing, the time limit for claiming a refund, and why the tourist should act promptly.
Can I hire a professional to assist with recovering my taxes?
Yes. A qualified tax professional can help you apply for an ITIN, prepare your Form 1040-NR, determine whether you qualify for treaty benefits, and assist with claiming any eligible refund of US tax withheld on gambling winnings.
Prefer to talk it through? Schedule your free callback today.
Clark Stott has been with Expat Tax Online since 2015. Being a dual national based in the UK, Clark has unique experience helping US citizens (and Accidental Americans) become tax compliant via the Streamlined Tax Amnesty program. Clark likes to help Americans in the UK keep their tax situations as simple as possible to avoid harsh IRS treatment.
