Sports betting and tax liabilities
Sports betting and tax liabilities
Current on: 11 August 2025
Short conclusion
In Australia, casual winnings from sports betting for amateurs are not taxed, however professional bettors are required to declare profits as business income. Cryptocurrency winnings and foreign payments are subject to special accounting.
1. ATO position
Amateurs: Sports betting winnings are not considered taxable as they are seen as a result of luck.
Professionals: Regular and systematic sports betting activities equate to business, and profits are subject to income tax.
Player status is determined by the regularity of bets, the use of analytical tools, the availability of strategy and the amount of income.
2. Signs of professional bettor
The main or significant source of income is sports betting.
Constant statistics, analytics, forecasting models.
The use of bankroll management as in a business plan.
Frequent and large transactions.
3. Taxation
Amateurs: There is no tax, but it is recommended to keep evidence of the random nature of the win.
Professionals: Profits are reported in the Business income section of the tax return. It is allowed to take into account expenses - subscriptions to analytical services, transport, tickets for matches.
Cryptocurrency: Winnings in digital assets are subject to capital gains tax (CGT) when sold or exchanged.
4. International bookmakers
For professionals, winnings from overseas bookmakers are also taxed.
Transfers from abroad over AUD 10,000 are recorded by AUSTRAC.
The ATO obtains data on international transactions through CRS agreements.
5. Documents to keep
Extracts from bookmaker accounts with a history of bets and payments.
Bank statements with receipts.
Proof of bonuses and promotions if they were part of the winnings.
For cryptocurrency - a record of the rate at the time of receipt.
6. Risks in hiding income
Penalties for non-declaration of taxable profits.
Late tax interest.
Possible criminal liability for intentional evasion.
7. Recommendations
Clearly define your player status.
Use transparent payment channels.
Keep detailed records of all rates, expenses and income.
In dubious situations - request private ruling from ATO.
Conclusion
For most Australians, sports betting is tax-free. However, for those who engage in betting professionally, profits are taxed as business income, and it is important to keep complete financial statements to avoid fines and claims from the ATO.
Current on: 11 August 2025
Short conclusion
In Australia, casual winnings from sports betting for amateurs are not taxed, however professional bettors are required to declare profits as business income. Cryptocurrency winnings and foreign payments are subject to special accounting.
1. ATO position
Amateurs: Sports betting winnings are not considered taxable as they are seen as a result of luck.
Professionals: Regular and systematic sports betting activities equate to business, and profits are subject to income tax.
Player status is determined by the regularity of bets, the use of analytical tools, the availability of strategy and the amount of income.
2. Signs of professional bettor
The main or significant source of income is sports betting.
Constant statistics, analytics, forecasting models.
The use of bankroll management as in a business plan.
Frequent and large transactions.
3. Taxation
Amateurs: There is no tax, but it is recommended to keep evidence of the random nature of the win.
Professionals: Profits are reported in the Business income section of the tax return. It is allowed to take into account expenses - subscriptions to analytical services, transport, tickets for matches.
Cryptocurrency: Winnings in digital assets are subject to capital gains tax (CGT) when sold or exchanged.
4. International bookmakers
For professionals, winnings from overseas bookmakers are also taxed.
Transfers from abroad over AUD 10,000 are recorded by AUSTRAC.
The ATO obtains data on international transactions through CRS agreements.
5. Documents to keep
Extracts from bookmaker accounts with a history of bets and payments.
Bank statements with receipts.
Proof of bonuses and promotions if they were part of the winnings.
For cryptocurrency - a record of the rate at the time of receipt.
6. Risks in hiding income
Penalties for non-declaration of taxable profits.
Late tax interest.
Possible criminal liability for intentional evasion.
7. Recommendations
Clearly define your player status.
Use transparent payment channels.
Keep detailed records of all rates, expenses and income.
In dubious situations - request private ruling from ATO.
Conclusion
For most Australians, sports betting is tax-free. However, for those who engage in betting professionally, profits are taxed as business income, and it is important to keep complete financial statements to avoid fines and claims from the ATO.
