ATO (Australian Taxation Office) Rules for Gambling
ATO (Australian Taxation Office) Rules for Gambling
Current on: 11 August 2025
Short conclusion
The Australian Taxation Office (ATO) does not tax gambling fans' winnings, but treats them as income for professional gamblers or when running gambling activities in a business format. The goal, regularity and organization of the game are key.
1. ATO General Position
Australia does not have a separate tax on gambling winnings for ordinary gamblers. However, the ATO applies standard tax rules if gaming activity bears the hallmarks of a business:
2. When tax is not charged
The game is entertaining.
The winnings are random and irregular.
Income from the game is not the main source of livelihood.
There are no business activity elements (plans, strategies, investments).
Example:
3. When tax is applied
Professional players: income from the game is systemic, stable and significant.
Bonus hunting or arbitrage: a purposeful game for guaranteed profit.
Betting organization: participation in a pool of players with income sharing.
International professional game: foreign tournaments, offshore casinos with regular payments.
Example:
4. Status criteria
The ATO analyzes a set of features:
5. Taxable income obligations
Declaration of income at rates for individuals or registered business.
Write-off option: tournament fees, travel, software, commissions.
Keeping accurate records of income and expenses.
6. Player recommendations
Clearly understand your status: hobby or business.
Keep supporting documents about winnings and payments.
If in doubt, request private ruling from ATO.
Professionals - work with an accountant to optimize taxes and avoid fines.
Conclusion
The ATO rules in the field of gambling are based on the principle: random winnings of amateurs - without tax, systemic profits of professionals - taxable income. It is important for players to assess their status and maintain transparent financial records in order to comply with legal requirements.
Current on: 11 August 2025
Short conclusion
The Australian Taxation Office (ATO) does not tax gambling fans' winnings, but treats them as income for professional gamblers or when running gambling activities in a business format. The goal, regularity and organization of the game are key.
1. ATO General Position
Australia does not have a separate tax on gambling winnings for ordinary gamblers. However, the ATO applies standard tax rules if gaming activity bears the hallmarks of a business:
- The main source of income is gambling.
- The game is regular, counting on long-term profit.
- Strategies and resources are applied to increase revenue.
2. When tax is not charged
The game is entertaining.
The winnings are random and irregular.
Income from the game is not the main source of livelihood.
There are no business activity elements (plans, strategies, investments).
Example:
- The player won 100,000 AUD in online slots by playing once a month - no tax is assessed.
3. When tax is applied
Professional players: income from the game is systemic, stable and significant.
Bonus hunting or arbitrage: a purposeful game for guaranteed profit.
Betting organization: participation in a pool of players with income sharing.
International professional game: foreign tournaments, offshore casinos with regular payments.
Example:
- Professional bettor receives AUD 250,000 per year from rates - the ATO classifies this as taxable business income.
4. Status criteria
The ATO analyzes a set of features:
- Regularity - how often a player participates in games.
- Volume - total income and number of bets.
- Approach - availability of planning, analytics, accounting.
- Financial dependence - does the game provide basic funding for life.
5. Taxable income obligations
Declaration of income at rates for individuals or registered business.
Write-off option: tournament fees, travel, software, commissions.
Keeping accurate records of income and expenses.
6. Player recommendations
Clearly understand your status: hobby or business.
Keep supporting documents about winnings and payments.
If in doubt, request private ruling from ATO.
Professionals - work with an accountant to optimize taxes and avoid fines.
Conclusion
The ATO rules in the field of gambling are based on the principle: random winnings of amateurs - without tax, systemic profits of professionals - taxable income. It is important for players to assess their status and maintain transparent financial records in order to comply with legal requirements.
