W2G

[Smitty]

Client received W2G, winnings from online gambling site...Draft Kings. W2G says he won $417, 200, which is horribly wrong. Client having trouble getting in touch with Draft Kings to find out how much he spent. Anybody else with this issue?  

Thanks

Naomi

[IRonMaN]

How do you know it is horribly wrong?  Are you sure he didn't dump $417,201 in to get those winnings?  

[Accountant-Man]

That is what he "won." The W2G doesn't report what he spent.

[Frustrated-in-IL]

Unfortunately, from what you describe, the W-2G is "horribly correct".

[BobKamman]

Gambling addiction is not a new issue.  Online sports betting is just a new place to see it.  Same story as people who put $450,000 into slot machines and get back "winnings" of $400,000.  That might involve 50 trips to a casino, with $2,000 rolled over 4 or 5 times.  At least they comp you free meals, at that level. Online gambling, you pay for your own food.  

[PATAX]

@IRonMaN Do people, i.e. clients, realize tax consequences when they get involved with this?🤔

[IRonMaN]

They tend to wear blinders and all they can think of is the next big win.

[PATAX]

@IRonMaN wannabe Jimmy the Greeks.

[BobKamman]

A key difference between sports betting and playing slot machines is that you have a better chance of claiming "professional gambler" status, and putting the winnings and losses on a Schedule C.  There is a degree of skill involved, not just luck.  It would be helpful if the bottom line turned out to be a profit (without cheating).  But professional gamblers need to keep good records, just like any other business.  Unlikely your client has done that.