Anyone who receives winnings from lottery games, racetrack betting or gambling must pay income tax on the prize money. Both residents and nonresidents of MD are subject to MD income tax on their winnings.
That applies to winnings from casinos, lottery, horse racing betting, and sports betting. Winnings above a certain level will automatically trigger notification to the IRS and a
W-2G Form, which you should receive from the operator come tax time (the IRS gets a copy of it, too). Often, federal taxes are automatically withheld right when you receive your gambling payout if your winnings cross a designated threshold.
However, if no tax was withheld and you did not receive a
W-2G IRS Form, you still must report all gambling income on your federal and state income tax return, according to the IRS.