Gambling winnings are taxable income in Indiana.
- Full-year Indiana residents pay tax on all of their gambling winnings, including winnings from riverboats and pari-mutuel horse races (even those winnings from out-of-state sources).
- Nonresidents pay tax to Indiana on gambling winnings from Indiana's riverboats and pari-mutuel horse racing tracks.
Winnings from Indiana's lotteries (Hoosier Lotto, Lucky 5, etc.) are also subject to Indiana tax, whether won by residents or nonresidents. See the Indiana Lottery Winnings Deduction in the IT-40 or IT-40PNR instruction booklets or contact the Department or Revenue for more information.