Oregon Sports Betting Taxes
Oregon sports betting is taxed in two places: at the player level (state and federal withholding on large wins) and at the operator level (the state's ~51% revenue share with DraftKings). This guide covers what bettors actually pay.
- OR State Withhold8% above $1,500
- Federal Withhold24% above $5,000
- State Revenue Share~51% of GGR
- Reporting Threshold$600 (W-2G)
- Tax FormW-2G + Schedule 1
State Withholding (8% above $1,500)
The Oregon Lottery directs DraftKings to withhold 8% of any single sports betting payout that exceeds $1,500. The withholding is applied to the gross payout, not net winnings. The withheld amount is reported to you on your year-end tax statement and credited against your Oregon state income tax liability.
Federal Withholding (24% above $5,000)
Federal law requires gambling operators to withhold 24% of any single payout that exceeds $5,000 and is at least 300x the wager amount (i.e., long-shot wins). Most NFL or NBA wagers do not trigger federal withholding because the odds aren't long enough; major futures or parlays sometimes do.
Reporting on Your Tax Return
All gambling winnings are taxable income at the federal and Oregon state level — even amounts below the withholding thresholds. You'll receive a Form W-2G for any winning of $600+ at 300x odds. Report winnings on Form 1040 Schedule 1, and on your Oregon Form OR-40.
Losses can offset winnings only if you itemize deductions (federal Schedule A). Casual bettors taking the standard deduction cannot net losses against wins.
The 51% State Revenue Share
This figure isn't paid by you — it's how much of DraftKings Oregon's gross gaming revenue (GGR) goes to the state under the Lottery contract. It's tied with New Hampshire, New York, and Rhode Island as the highest effective state share in the US. It's the reason DraftKings Oregon offers fewer / lower promotions than DraftKings in other states.