Can you deduct the costs of losing lottery tickets?

I think you have to report winnings when it is a certain amount. I don't think gambling counts as a deduction. If it is, man, I got some deductions from Vegas I'd like to add.

From http://www.irs.gov/individuals/page/0,,id%3D14476,00.html

You must include your gambling winnings as income.

If you itemize your deductions on Form 1040, Schedule A, you may deduct gambling losses you had UP TO the amount of your winnings.

Winnings from lotteries and raffles are gambling winnings. In addition to cash winnings, you must include in your income bonds, cars, houses, and other noncash winnings at their fair market value.

FAIR MARKET VALUE is the price at which the property would change hands between the buyer and a seller, neither being required to buy or sell, and both having reasonable knowledge of all necessary facts.

If you win a state lottery prize payable in installments, you must include in income both the annual payments and any amount designated as "interest" on the unpaid installments.

Any Federal income tax withheld from your gambling winnings should be included on your return. Be sure to attach your Form W2-G to your return.

cool!

So, let's say there are 49% / 51% odds against me to bet on "black" at the roulette wheel (because of the green "0"). If I can write off all of my losses, and get a percentage of the losses back, wouldn't that theoretically put the odds of winning in my favor?

Your odds are even worse on U.S. wheels since there is also a double "0". As to the odds changing, your question is moot, since if you play enough for the odds to take hold, you won't have any net winnings to be offset by your losses.