Is are gambling losses deductible a business expense?

Gambling losses can only be deducted if you itemize your deductions on Schedule A and only up to the amount of your gambling winnings. This means if you have $5,000 in winnings and $7,000 in losses, you can only deduct $5,000. For professional gamblers, gambling losses may be considered a business expense and reported on Schedule C, but this requires meeting strict criteria that demonstrate gambling is their primary source of income and that they engage in it with regularity and continuity. Hobby gamblers cannot deduct losses as business expenses.