Are Gambling Winnings Taxed in Australia?
For most people in Australia, gambling winnings are not taxable. The Australian Taxation Office (ATO) lists betting and gambling wins among amounts that are not assessable income unless you carry on a betting or gambling business, and it lists prizes from ordinary lotteries, such as lotto draws and raffles, as amounts you do not include in your tax return. The same rule means recreational losses are not deductible.
This page covers the general rule, the narrow professional-gambler exception, how crypto changes the picture, and the related taxes that do apply. It is general information; for your own circumstances, contact the ATO or a registered tax agent.
The General Rule
| Situation | Winnings taxable? | Losses deductible? |
|---|---|---|
| Recreational punter (pokies, casino games, sports bets, lotto) | No | No |
| Lottery or raffle prize | No | Not applicable |
| Game-show prize | No, except regular appearance fees | Not applicable |
| Person carrying on a business of gambling | Yes, as ordinary income | Yes, as business losses |
| Interest or dividends earned after investing winnings | Yes | Usual investment rules |
The reasoning in tax rulings and case law is that recreational gambling is not an income-producing activity. The ATO applies the same reasoning when tips from a tipping service are used for personal betting: the winnings are not assessable and the losses are not deductible.
Capital Gains Tax
Capital gains and losses made directly from gambling, a game or a competition with prizes are disregarded for CGT purposes. A win does not create a capital gain, and a losing session does not create a capital loss you can offset against shares or property.
The Professional Gambler Exception
Gambling winnings become assessable only where the gambling is a business. The ATO’s long-standing ruling IT 2655 accepts that a punter can carry on a betting business but states this is rare, and it notes that no Australian case had found a mere punter’s winnings assessable. Courts look at factors such as:
- whether betting is conducted systematically and in a businesslike way, with records, staking plans and capital;
- whether chance or skill dominates (activities where skill is significant are more likely to be treated as a business than pure games of chance);
- the scale, frequency and regularity of the activity;
- whether the person is involved in related industry activities, such as owning or training racehorses.
Because pokies, roulette and other casino games are games of chance with a built-in house edge, it is very unlikely that casino play would be treated as a business. Poker or sports betting carried out full-time with documented methods is the area where the question is sometimes argued.
Winnings From Offshore Casinos
The tax rule does not depend on where the operator is licensed. A win at an offshore casino is treated the same as a win at an Australian venue. The legal status of the operator under the Interactive Gambling Act is a separate question, covered on is online gambling legal in Australia.
Practical points for offshore play:
- Large transfers from an overseas operator may prompt questions from your bank. Keep the casino’s withdrawal confirmation and your account history.
- Currency conversion fees and exchange-rate movements on non-AUD accounts are a cost, not a deductible loss. See AUD casinos for how account currency affects what you receive.
Crypto Deposits and Winnings
Crypto adds two separate tax events that are easy to miss:
- Depositing crypto. Sending crypto you already hold to a casino is a disposal of that asset. If its value rose since you acquired it, the disposal can produce a capital gain under the normal crypto rules, regardless of what happens at the casino.
- Withdrawing and holding winnings. The win itself is not ordinary income and any capital gain on the win is disregarded. The ATO’s example: a crypto prize worth A$20,000 has a cost base of A$20,000. If it is later sold for A$30,000 after holding it for at least 12 months, the A$10,000 gain is a capital gain, reduced to A$5,000 by the 50% CGT discount.
Record the A$ value of every crypto deposit and withdrawal on the day it happens. Our crypto wallets guide and crypto casino tips cover wallet records in more detail.
Taxes That Do Apply to Gambling
| Tax | Who pays | Notes |
|---|---|---|
| GST on gambling | The operator | Calculated on the operator’s gambling margin under the GST law |
| State point-of-consumption taxes | Licensed wagering operators | Charged by states on bets placed by their residents |
| Gaming machine and casino taxes | Venues and casinos | Set by each state and territory |
These taxes are built into odds, RTPs and venue economics; they are not deducted from a player’s winnings.
Centrelink and Other Effects
A win that you keep becomes a financial asset. Services Australia counts financial assets under its assets test and deeming rules, so a large win can affect payments such as JobSeeker or the Age Pension. Report changes in your assets within the required time.
Record Keeping Checklist
- Monthly activity statements (licensed Australian providers must send them).
- Withdrawal confirmations and transaction IDs from offshore operators.
- A$ values of crypto at each deposit and withdrawal.
- Bank statements showing gambling transfers, which also help with tracking your spending.
Official sources: ATO: amounts you do not include as income and ATO: crypto asset prizes and gambling winnings.
This guide is part of our online gambling in Australia section, which covers the law, licences, complaints and player protections.
Frequently Asked Questions
Generally no. The ATO does not treat betting and gambling wins as assessable income unless you carry on a betting or gambling business.
No, recreational gambling and ordinary lottery winnings are not declared as income. Interest or investment returns you later earn on the money are taxable.
Not as a recreational gambler. Losses are deductible only when gambling is carried on as a business, which the ATO says is rare.
No. The tax treatment does not depend on where the operator is based. The operator’s legal status in Australia is a separate issue.
The win itself is not ordinary income. If you hold the crypto and later sell or swap it, any gain from the time you won it is subject to CGT. Depositing crypto you already held can also trigger a capital gain.
Gambling is for adults 18+ only. For free, confidential help, call Gambling Help Online on 1800 858 858.