Yes, you need to include the winnings on your return even if the net paid is under $1,000.

To enter your W2G Winnings), please follow these instructions: 

• Sign In to TurboTax Online
• Click "Take Me to my Return"
• Click "Federal" from the left side of your screen
• Scroll down to "Less Common Income" and click "Show More"
• Click "Start" to the right of "Gambling Winnings" and click "Yes"
• From here TurboTax will walk you through entering your Gambling Winnings, with or without a Form W2G
• As you walk through this section, you will also be asked about your Gambling Losses

If you itemize your deductions on Schedule A, you can take a deduction for your gambling losses up to the amount of your winnings.  For more information, check out this TurboTax article: Deducting Gambling Losses.