The amount is taxed under the state gross income tax. So, any winnings that you generate through the lottery that exceed $10,000 have been taxable income since 2009. This is standard procedure, but luckily for you, lottery winnings are charged at a much lower rate compared to online gambling products such as sportsbook and casino games. For better or for worse, two types of tax apply to your lottery winnings. The first point we wish to cover is how online gambling is taxable income.
