For US players, winnings at sea are taxable just like winnings on land, and you report all of them even if nobody gives you a form. For 2026, a slot jackpot triggers a W-2G (The IRS form a casino issues to report certain gambling wins, such as a single slot jackpot of $2,000 or more in 2026.) at $2,000 or more (up from $1,200), and only 90% of your losses are deductible, and only if you itemize.
Cruise line win/loss statements aren't tax forms and leave out some play, so keep your own record of every session. This is general information, not tax advice.
Terms with a dotted underline are explained when you tap or select them.
Not tax advice
This is general information from IRS publications and cruise line pages, checked October 11, 2026. Tax rules depend on your situation, so talk to a tax professional before you file.
The basics for US players
The IRS says gambling winnings are fully taxable, including the fair market value of prizes like cars or trips. You report all of them on your return, even if nobody gives you a form. US citizens and residents are taxed on worldwide income, so a jackpot in international waters counts the same as one in Las Vegas.
Form W-2G thresholds for 2026
- Slots: a single jackpot of $2,000 or more, up from $1,200, which had been the threshold since 1977. Indexed for inflation from 2027.
- Bingo and keno: the IRS now points to an "applicable" threshold. Royal Caribbean's and Celebrity's FAQs still list bingo at $1,200.
- Table games: a payout of more than 300 times the bet, and over the minimum threshold.
- Poker tournaments: net winnings over $5,000.
Form 1099-MISC
Prizes and awards that aren't wagers, such as some tournament or contest prizes, go on a 1099-MISC. From 2026 the threshold is $2,000, up from $600. A Las Vegas Advisor columnist sums up cruise practice as W-2Gs for machine wins and 1099s for tournament and contest prizes.
Slots and bingo wins aren't subject to regular withholding, but the casino withholds 24% if you don't give a correct Social Security number.
What each cruise line issues
Win/loss statements are a summary of tracked play, not a tax form. Royal Caribbean and Celebrity say theirs aren't official tax documents and aren't sent to the IRS.
| Line | W-2G / 1099 | Win/loss statement | Notes |
|---|---|---|---|
| Royal Caribbean | Yes, to US citizens and residents: slots $2,000+, bingo $1,200+, table payouts over 300x, Lotto $600 to under $5,000. | Online from Club Royale, for the past five years. The prior year is ready after January 31. | Non-US guests get Form 1042 for wins in US waters. Statements leave out poker, untracked machines and FreePlay (Promotional credit you play through a machine rather than cash out directly. Play paid for with it doesn't earn points on most lines.). |
| Celebrity | Yes, same thresholds as Royal Caribbean. | By request form, after January 31, for the past five years. | Same exclusions as Royal Caribbean. |
| Carnival | Yes. Request W-2G/1099 documents through Ocean Players Club. | Request through Ocean Players Club. | Carnival's post-cruise page sends guests to the casino for both. |
| Norwegian | A W-2G request form is linked from the statement page. | Online from your Casinos At Sea account after January 31. Questions: winloss@nclcorp.com. | Statements include W-2G hand-paid jackpots and losses. |
| Princess and Holland America | No official page found. | No official page found. | Both are Carnival Corporation brands, and Ocean Players Club handles tax document requests for that group's casino program. We couldn't confirm it covers them. |
| Virgin Voyages | Not stated. | Request form on the casino page. | Offer terms make the guest responsible for any tax liability. |
| MSC | Reported not to issue W-2Gs Reported. | Reported not to provide them Reported. | See below. MSC hasn't confirmed either way. |
| Margaritaville at Sea | Not named. | Not found. | Terms say the line may ask for tax information before issuing some rewards. |
Does MSC issue W-2Gs?
TheStreet reported in 2024 that MSC "does not participate" in W-2G reporting, and URComped wrote in 2020 that MSC didn't supply win/loss statements or W-2Gs. A reader comment claims MSC only issues one for wins of $5,000 or more, and a forum poster never heard back on a statement request. MSC hasn't published a policy. Either way, the IRS is clear that US taxpayers must report winnings whether or not they get a form.
Deducting losses: the 2026 change
The rules
- You can only deduct losses if you itemize (List your deductions one by one (on Schedule A) instead of taking the standard deduction.).
- Deductions can't exceed the gambling winnings you report.
- You need records to back them up.
- New for tax year 2026: only 90% of losses are deductible.
What 90% means
Win $10,000 and lose $10,000 over the year, and you can deduct only $9,000. You'd owe tax on $1,000 even though you broke even.
Bills to restore the full deduction are moving: the FAIR BET Act cleared a House committee in September 2026, and the Senate has the FULL HOUSE Act. Neither was law as of October 11, 2026.
Keep your own records
The IRS expects "an accurate diary or similar record" of winnings and losses: date, place, game and amount for each session, plus tickets, receipts and statements.
- Don't rely on the statement aloneCruise line statements miss poker, untracked machines and promotional play. One cruiser told Royal Caribbean Blog his statement came within 20% of his own figures.
- Log every sessionWrite down buy-in and cash-out as you go. Our free casino log records date, line, ship, game, buy-in and cash-out, and exports to a file.
- Keep the paperworkSave W-2Gs, win/loss statements, your final folio and any cash advance receipts.
Not a US taxpayer?
- Nonresident aliensWinnings paid to nonresidents generally face 30% US withholding and go on Form 1042-S, not a W-2G. Blackjack, baccarat, craps, roulette and big-6 wheel wins are exempt for non-professional gamblers. Treaty benefits must be claimed.
- On shipsRoyal Caribbean and Celebrity issue Form 1042 to non-US guests only for wins in US territorial waters. Neither mentions withholding on non-US guests in international waters.
- UK residentsHMRC doesn't tax gambling winnings for people who aren't gambling as a trade, and doesn't give relief for losses.
- CanadaAmong nonresident aliens, generally only Canadian residents can deduct gambling losses on a US return.
Sources
- IRS — Topic 419, Gambling income and losses (reviewed Sep 24, 2026)
- IRS — Instructions for Forms W-2G and 5754 (updated Apr 30, 2026)
- IRS — Instructions for Forms W-2G and 5754 (PDF) (Rev. Jan 2026)
- IRS — Instructions for Forms 1099-MISC and 1099-NEC (accessed Oct 2026)
- IRS — Nonresident aliens: exclusions from income (updated Feb 25, 2026)
- Holland & Knight — W-2G reporting threshold raised (Jan 8, 2026)
- CasinoBeats — IRS slot jackpot threshold rises to $2,000 (Dec 19, 2025)
- Kiplinger — New gambling loss deduction limit (updated Jul 21, 2025)
- NATP — Will the gambling deduction change be reversed? (Sep 11, 2025)
- CDC Gaming — Full gambling loss deduction bill advances (Sep 16, 2026)
- CPA Practice Advisor — Gambling loss amendment (Jan 23, 2026)
- Royal Caribbean — Casino onboard regulations (accessed Oct 2026)
- Royal Caribbean — Requesting a win/loss statement (accessed Oct 2026)
- Celebrity Cruises — Onboard casinos FAQ (accessed Oct 2026)
- Carnival — Post-cruise inquiries (accessed Oct 2026)
- Ocean Players Club — Contact and tax documents (accessed Oct 2026)
- NCL — Win/loss statement (accessed Oct 2026)
- Virgin Voyages — Casino (accessed Oct 2026)
- Margaritaville at Sea — Casino Players Club terms (accessed Oct 2026)
- TheStreet via Hermiston Herald — Cruise casino taxes (May 18, 2024)
- URComped — MSC Voyagers Club casino program (Apr 27, 2020)
- Royal Caribbean Blog — Casino win/loss report (Feb 3, 2025)
- Las Vegas Advisor — Cruise jackpots (Jul 27, 2022)
- HMRC — Business Income Manual BIM22015 (updated Aug 4, 2026)
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