Gambling Losses are an itemized deduction and you need to itemize on schedule A to use them. So if your Standard Deduction is more they won't be used. Even if you itemize deductions and use the losses, the increase in your AGI from the income may affect and reduce some credits on your return like the EIC. And may cause more of your Social Security to be taxable.
Also deductions don’t reduce your tax 1 to 1. If you are able to itemize you just get a percentage of your deductions back. Like if you are in the 25% tax bracket for a $100 deduction you will save $25. It isn't added on to your refund. Deductions reduce your income so you get taxed on a lower amount.
And that is just for the amount that puts you over the Standard Deduction.
