Enter the 1099K for gambling in the gambling section. Report it as income received not on a W2G. Then it asks for the gambling income not reported on the W2G and then there will be a box that will allow you to enter your gambling losses up to the amount of your winnings. If you can itemize your deductions for the year, this will offset your gambling income. You will make no adjustment for this.
Don't enter this as a 1099K in that section because there is no way to enter your gambling losses without gambling income to support it. It must be reported in federal>wages and income>less common income>gambling winnings
As far as the state taxes, do you have enough to itemize to take advantage of the deduction? Also your state may not allow gambling losses thus you may need to check with your State Dept of Revenue to see if this is the case.
Regarding the 1099 NEC or 1099K, are you certain there is overlapping income or is the correct amount of your income split evenly between the two forms? Use caution when trying to make adjustments if you feel there is overlapping income as these could raise red flags with the IRS.
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