Deductions & credits

Oklahoma allows a gambling loss deduction as an itemized deduction not a subtraction adjustment. However, unlike the federal itemized deductions, Oklahoma's itemized deductions other than medical expenses and charitable donations are limited to $17,000. This is why your Oklahoma tax liability is higher than expected considering your significant gambling losses.

It seems there have been several attempts to pass legislation exempting gambling winnings from the $17,000 cap but none of that legislation has passed.

[Edited 3/13 @ 6:02 am]