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The tax court's decision. The tax court held that coleman had substantiated that his gambling losses for 2014 were in excess of his gambling winnings, so he was entitled to the $350,241 gambling loss deduction. In making its decision, the court relied in part on the testimony of a gaming industry expert who testified on behalf of coleman. Read on to find out the top 5 greatest gambling losses of all time, and how they went down. Maureen o’connor: $13 million. Gambling income is almost always taxable, which is reported on your tax return as other income on schedule 1 – efileit. This includes cash and the fair market value of any items you win. By law, gambling winners must report all of their winnings on their federal income tax returns. Gambling losses are indeed tax deductible, but only to the extent of your winnings and requires you to report all the money you win as taxable income on your return. The deduction is only available if you itemize your deductions. If you claim the standard deduction, then you can't reduce your tax by your gambling losses. The biggest loss in casino history belongs to “the mattress king” totalling over $13 million. Charles barkley has gambled away a lot of money, but nothing tops his $2. 5 million blackjack loss. Kerry packer lost $5 million when he bet on the horse myocard at the 1987 sydney cup. Humans are an odd species. All casino games have an rtp (return to player) rate. This percentage shows how much money you will lose on a game in the long run. Here is an example: if the rtp rate of a game is 92% and you invest 100 usd, you will be able to recover 92 usd of that investment in the long run. In other words, your losses will be limited to 8 usd
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