Are gambling winnings taxed? Can losses be used to cover any tax owed?

ANSWER

The BIDaWIZ Team's Answer:

Yes; gambling proceeds ["winnings"] are subject to taxation.

However, all gambling losses, up to the amount of your

total gambling proceeds ["winnings"] are tax deductible. 

The sum of your gambling losses are reported on schedule A, of your 

Form 1040, as a "misc." itemized deduction, and the amount is not subject to

the "2% AGI" floor.