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Winnings over $600 are subject to a 24% withholding tax, which can be applied at casinos or sports betting agencies, as well as when filing tax returns. If sports betting ohio do not receive a W2-G from the gaming facility, sports betting ohio are still required to include sports betting ohio winnings on sports betting ohio tax return. And because sports betting is considered income, its winnings are subject to federal and state taxes. If sports betting ohio do not report this income, sports betting ohio are subject to a penalty of 0. All gambling income must be reported to the Internal Revenue Service (IRS) as "other income" on Form 1040. S.