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If you are going to show the gambling wininngs as Other income you can only deduct losses (and only losses) on Schedule A. You cannot take the fees. If you were able to argue that you were a professional gambler and therefore engaged in a trade, you might be able to deduct the fees, but then you are also looking at SE tax implications. That comes out at 15.3% of profits. Fine if you made losses, not so fine if you made a profit !My gut reaction is that you are going to have to eat the fees. It will probably be better for your long-term tax health

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