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You cannot cut down your gambling winnings ($500) by your gambling losses ($400) and only report the difference ($one hundred) as income. If you itemize, you can claim a $400 deduction for your losses, but your winnings and losses must be handled separately on your tax return. In August of 2018, West Virginia became the fifth state to legalize sports gambling. Massachusetts sports betting is set to launch on January 31 at three in-person places.

The states also have differing legal gambling ages, with some states requiring the identical minimum age for all sorts of gambling, when for other individuals, it depends on the activity. For instance, in New Jersey, an 18-year-old can purchase a lottery ticket or bet on a horse race, but can not enter a casino till age 21. Presumably, the age 21 restriction is due to the sale of alcohol in that location. Congress has applied its power below the Commerce Clause to regulate interstate gambling, international gambling, and relations involving the United States and Native American territories.

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