Yes, you are required to report/file all your W2G income even if your losses are more than your winnings. Gambling
losses are ITEMIZED Deductions and will
show up on Schedule A only if you itemize your deductions instead
of taking the standard deduction. As such your gambling winning are not
directly offset by the losses on a dollar for dollar basis. First you are only
allowed to make a claim for gambling losses up to the amount of
winnings.
