U.S. · Tax forms
The W-2G 300 times the wager rule.
A payout can pass the dollar threshold and still not trigger a Form W-2G.
For horse and dog racing, jai alai, other wagering, sweepstakes, wagering pools, lotteries and sports wagering, a payout is reportable on Form W-2G only if it meets the applicable reporting threshold and is at least 300 times the wager. Bingo, keno, slot machines and poker tournaments use the threshold alone.
Look it up
Result
Where the 300 times test applies
| Game | Reporting test | Regular 24% withholding |
|---|---|---|
| Horse racing, dog racing, jai alai, other wagering | Meets the reporting threshold and at least 300 times the wager | Winnings minus wager exceed $5,000 and are at least 300 times the wager. |
| Sweepstakes, wagering pools, lotteries | Meets the reporting threshold and at least 300 times the wager (wager subtracted from winnings) | Winnings minus wager exceed $5,000. |
| Sports wagering | Meets the reporting threshold and at least 300 times the wager | Winnings minus wager exceed $5,000 and are at least 300 times the wager. |
| Bingo, keno, slot machines | Meets the reporting threshold (keno: after the wager for the winning game is deducted) | Regular gambling withholding does not apply; backup withholding if no TIN. |
| Poker tournaments | Net winnings after buy-in meet the threshold | Regular gambling withholding does not apply if W-2G is filed and copy given; backup withholding if no TIN. |
Two thresholds, two jobs
The IRS instructions separate the reporting threshold from the withholding line. Regular gambling withholding is 24% and, for the games above, starts when winnings minus the wager exceed $5,000. For payments made in calendar year 2026 the instructions put the minimum threshold amount at $2,000 and refer to Pub. 1099 and IRS.gov/InflationAdjustment for the threshold for each type of gambling. The 300 times test is added on top for the racing, sweepstakes, lottery and sports categories.
Backup withholding in the same cases
If the winner does not provide a TIN, backup withholding also at 24% applies to reportable winnings that are not already subject to regular gambling withholding. For the 300 times categories, backup withholding applies where winnings meet or exceed the reporting threshold but are not more than $5,000 and are at least 300 times the wager.
Worked example
Alicia bets $5 on a parimutuel horse-race ticket that pays $2,400. Assuming the 2026 reporting threshold is the $2,000 minimum the instructions give, the payout is above it, and 300 times $5 is $1,500, so the payout is at least 300 times the wager: Form W-2G applies. Winnings minus wager are $2,395, which does not exceed $5,000, so no regular withholding. A second ticket, $10 paying $2,500, passes that dollar threshold but 300 times $10 is $3,000, so it is not reportable on Form W-2G. The tickets are made up.
More from this set
Related pages: W-2G Poker Tournament, W-2G Box 3. The 1099-R box 7 lookup and W-2 box 12 lookup cover the same kind of question for those forms.
Sources
- Instructions for Forms W-2G and 5754 (Rev. January 2026): Withholding and Backup Withholding, and sections 1 to 5 of the Specific Instructions for Form W-2G. Read November 2, 2026.
IRS instructions as read on the date above; thresholds and revisions change. Names and amounts in worked examples are made up.
Frequently asked questions
What is the 300 times the wager rule?
For several kinds of gambling, a payout must be at least 300 times the wager, as well as meeting the reporting threshold, before the payer files Form W-2G.
Which games use it?
Horse racing, dog racing, jai alai and other wagering, sweepstakes, wagering pools and lotteries, and sports wagering.
Does it apply to slot machines or poker?
No. The instructions for bingo, keno and slot machines and for poker tournaments use the applicable reporting threshold without a multiple of the wager.
When is 24% withheld?
Generally when winnings minus the wager exceed $5,000, and for racing and sports also when winnings are at least 300 times the wager.
Does winning less than 300 times the wager mean it is not taxable?
No. The rule decides whether the payer reports and withholds. This page does not say whether winnings are taxable to you; ask a tax preparer.
Not tax advice
This page summarizes IRS instructions, which are written mostly for the people who file the form, and is not tax, legal or financial advice. The payer, a CPA or an enrolled agent can confirm what a box means for your return. Everything runs in your browser; nothing you enter is sent anywhere.