That is true, you are allowed to deduct gambling losses only to the extent of your winnings. Try going back and entering the amount $3,112 as the gambling losses and see it the message goes away.
Here is an excerpt from TurboTax guidance How to Pay Taxes on Gambling Winnings
and Losses
"You can’t deduct the cost of your wager from your winnings when determining how much you won, but you can deduct your gambling losses subject to certain rules.
- You must itemize your deductions to claim your gambling losses as a tax deduction.
- This means you can’t take the standard deduction for your filing status, which often amounts to more than a taxpayer’s itemized deductions.
You’re allowed to deduct losses only up to the amount of the gambling income you claimed. So if you won $2000 but lost $5,000, your itemized deduction is limited to $2,000. You can’t use the remaining $3,000 to reduce your other taxable income."