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You can not minimize your gambling winnings ($500) by your gambling losses ($400) and only report the difference ($100) as revenue. If you itemize, you can claim a $400 deduction for your losses, but your winnings and losses have to be handled separately on your tax return. In August of 2018, West Virginia became the fifth state to legalize sports gambling. Massachusetts sports betting is set to launch on January 31 at 3 in-individual locations.