Gambling losses can be taken as a deduction on your tax return. However, please keep in mind that you can only deduct up to the amount that you won that year. For example, if you won two thousand dollars in 2013, you can only deduct losses of up to two thousand dollars. This is a great way to offset any large winnings. - Please refer to publications 525 and 529 for more information. - Additionally, note that gambling winnings will be reported on Form W-2G and filed with the IRS.