How to keep track of wins and losses
In Australia, the need to account for wins and losses depends on the player's status. For amateurs, such accounting is voluntary and helps control their personal budget. For professional gamblers or individuals whose gambling activity is treated as a business, accurate accounting is required for correct taxation and protection against Australian Taxation Office (ATO) claims.
Purpose of record keeping:
The ATO's main requirements for professional players are:
What to include in your account:
Documents that are important to keep:
Accounting tools:
Accounting recommendations:
Risks in the absence of accounting:
Conclusion
The correct accounting of gambling winnings and losses is a tool of financial control and legal protection. For professional players, it is mandatory, and for amateurs, a useful measure to maintain transparency and bankroll management.
Purpose of record keeping:
- Proof of funds origin at ATO or AUSTRAC inspections.
- Determination of taxable income for professional players.
- Analysis of the effectiveness of game strategy.
- Budget control and financial risk mitigation.
The ATO's main requirements for professional players are:
- 1. Maintain accurate records of each bet and win.
- 2. Keep documents confirming transactions for at least 5 years.
- 3. Recording of all taxable income in the annual declaration.
What to include in your account:
- Date and time of the operation.
- Type of game (poker, sports betting, slot machines, etc.).
- Place (casino, online platform, tournament).
- Bet amount.
- Win or lose amount.
- Net result for each session.
Documents that are important to keep:
- Bank statements of accounts used for the game.
- Casino receipts and checks.
- Screenshots of online casino transactions.
- Agreements and confirmations of participation in tournaments.
Accounting tools:
- 1. Excel or Google Sheets - for structured data storage.
- 2. Specialized applications for accounting for gambling - with automatic import of transactions.
- 3. Player Log - paper or electronic, where all game sessions are recorded.
Accounting recommendations:
- Separate your gaming and personal finances using a separate bank account.
- Enter data immediately after the game session to avoid errors.
- Keep records of not only winnings, but also expenses (buy-ins, commissions, trips).
- When playing in different currencies, fix the equivalent in AUD at the rate on the transaction date.
Risks in the absence of accounting:
- Inability to prove the legality of the origin of funds.
- Tax return errors.
- Increased attention from ATO and AUSTRAC in large transactions.
Conclusion
The correct accounting of gambling winnings and losses is a tool of financial control and legal protection. For professional players, it is mandatory, and for amateurs, a useful measure to maintain transparency and bankroll management.
