Sports Betting Taxes in New Hampshire
The good news for NH bettors: New Hampshire has no broad-based personal income tax, so your gambling winnings are taxed only at the federal level. The bad news: federal rules still apply, and they apply to all winnings — not just amounts that trigger W-2G forms.
This page summarizes general federal and NH tax rules. It is not tax advice. Consult a qualified tax professional for guidance on your specific situation.
What Triggers a Tax Form
Operators are required to issue tax forms when certain thresholds are met. The form is sent to both you and the IRS.
Single payout of $600+ at 300:1 odds or higher
Long-shot futures or large parlays. Common trigger for futures bets settled at +30000 or longer.
Single sports betting payout of $5,000+ net (winnings minus stake)
Large single-ticket wins on parlays, futures, or props.
Total net annual winnings of $600+
Aggregated across the year. DraftKings issues 1099-MISCs after January for the prior tax year.
Single payout requiring federal withholding
On qualifying W-2G amounts, DraftKings withholds 24% federally before paying out. You may owe more or get a refund based on your total tax situation.
What You Need to Know
All winnings are taxable income
Federal law requires reporting all gambling winnings, even amounts below the $600 W-2G threshold. Net winnings are reported on Schedule 1 of Form 1040.
Losses only deductible if you itemize
You can deduct gambling losses up to the amount of your winnings — but only if you itemize deductions on Schedule A. The standard deduction is unavailable in combination with loss deductions.
Keep records
IRS guidance recommends keeping a log of dates, locations, amounts wagered, and amounts won/lost. DraftKings provides year-end activity statements that simplify this.
Net winnings reporting on DFS
Daily fantasy operators (DraftKings DFS, FanDuel) issue 1099-MISCs for net winnings of $600+. Skill-based DFS is treated differently from sports betting for some tax purposes — consult a professional.
New Hampshire State Tax Rules
No state income tax on wages
New Hampshire has no broad-based personal income tax. Wage income is not taxed at the state level.
Interest & Dividends Tax (being phased out)
NH historically taxed interest and dividend income at 5%. This tax was reduced annually and fully repealed effective January 1, 2025. Gambling winnings have never been treated as interest or dividend income, so this tax did not apply.
No state tax on gambling winnings
Because NH has no general personal income tax, your gambling winnings are not taxed at the state level. You only owe federal tax.
Other states may tax you
If you placed wagers while physically located in another state (during travel) and meet that state’s reporting threshold, you may have a non-resident state tax obligation in that state. NH residents do not get a credit because NH has no income tax.
Tax Questions
Are sports betting winnings taxable in New Hampshire?
Yes — at the federal level only. The IRS treats all gambling winnings as taxable income regardless of amount. New Hampshire has no broad-based state income tax, so winnings are not taxed at the state level for NH residents.
When does DraftKings issue a W-2G?
DraftKings issues a W-2G when a single wager pays $600 or more at odds of 300-to-1 or higher, or when a single payout reaches $5,000 or more in net winnings. W-2G forms are issued by January 31 for the prior tax year.
Does DraftKings withhold federal tax automatically?
Yes, on qualifying payouts. The standard federal withholding rate on gambling winnings is 24%. The withholding appears on your W-2G and is credited against your annual federal tax liability when you file.
Can I deduct my gambling losses?
Only if you itemize deductions on Schedule A. Losses are deductible up to the amount of your winnings — you cannot deduct net losses. If you take the standard deduction, you cannot deduct gambling losses.
Do I have to report winnings below $600?
Yes. All gambling winnings are taxable regardless of whether a W-2G or 1099 is issued. The reporting threshold is what triggers operator-issued tax forms, not what triggers your obligation to report.
How are DFS winnings taxed?
Net daily fantasy winnings of $600 or more in a calendar year trigger a 1099-MISC from the DFS operator. DFS is treated as a game of skill, but tax treatment of net winnings is similar — federal taxable income, no NH state tax.
What about cryptocurrency winnings on DraftKings NH?
Crypto deposits and withdrawals are treated as gambling transactions for sports betting purposes. Federal tax rules apply the same way as for cash. If the crypto appreciates between deposit and withdrawal, separate capital gains rules may also apply — consult a tax professional for crypto-specific guidance.