the IRS requires that ALL winnings be reported on 1040 schedule 1 line 21. all losses up to the amount of winnings is reported on schedule A line 16.
the estimated wins/losses are net
casino 1 net cash in = gross losses $369,763 ($2,838,611-2,468,848)
jackpots = gross winnings $366,502
net loss $ 3,261
casino 2 net cash in = gross losses $294,279 ($2,494,720-2,200,441)
jackpots and net table = gross winnings $201,220
net loss $ 93.059
not sure about w2g since $196,770 + $4,230 = $201,000
one thing to consider if you are preparing his return for compensation, does the income he's reporting support the net losses. if not does he have other sources that are not taxable
so for reporting line 21 on schedule 1 about $568,000 with an offsetting amount on schedule A line 16
