Are online casino winnings taxed in Australia
Are online casino winnings taxed in Australia
Current on: 11 August 2025
Short conclusion
In Australia, individuals who play online casinos do not pay tax on winnings unless gambling is their main source of income. Tax obligations are imposed on operators, not players, but there are nuances for professional gamblers and in international transfers.
1. Main tax position
According to the Australian Taxation Office (ATO), gambling winnings, including online casinos, are not taxable if the player participates in them as entertainment.
All tax liabilities are borne by the operator, who pays licensing fees and taxes in accordance with state or territory laws.
Players are not required to declare such earnings on a tax return unless they are gambling as a business.
2. When tax can be applied
If the player is considered a professional player (the main income is from gambling).
If the winnings are business related (e.g. betting).
If international tax agreements apply when transferring large amounts from abroad.
If the transaction is under investigation under the laws of AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing Act).
3. Taxation of operators
Licensed online casinos in Australia pay taxes and fees according to state jurisdiction:
4. International winnings
If the casino is not licensed in AU, the transfer may attract the attention of the bank and the ATO.
For significant amounts (> 10,000 AUD), transactions are automatically checked within AML/CTF.
The ATO can ask for explanations of the source of funds, but taxation for ordinary players does not apply.
5. Practical recommendations to players
Store transaction and payment confirmations.
Use licensed AU casinos to simplify financial matters.
With a regular and large game, keep records in order to prove the status of an amateur, not a professional, if necessary.
Avoiding the use of offshore casinos without a transparent license may raise questions from the bank and regulators.
6. Case studies
A Sydney player won 50,000 AUD at a licensed NTRC casino - no tax applied.
A professional poker player in Melbourne who only earns income from tournaments has been found to be running a business and is required to pay tax.
The transfer of 100,000 AUD from an offshore casino led to an AML/CTF check, but no tax was charged.
Conclusion
For most Australians, online casino winnings are tax-free. Exceptions apply to professional players and special cases with international transfers. The main thing is to choose licensed sites and maintain financial transparency to avoid problems with the ATO.
Current on: 11 August 2025
Short conclusion
In Australia, individuals who play online casinos do not pay tax on winnings unless gambling is their main source of income. Tax obligations are imposed on operators, not players, but there are nuances for professional gamblers and in international transfers.
1. Main tax position
According to the Australian Taxation Office (ATO), gambling winnings, including online casinos, are not taxable if the player participates in them as entertainment.
All tax liabilities are borne by the operator, who pays licensing fees and taxes in accordance with state or territory laws.
Players are not required to declare such earnings on a tax return unless they are gambling as a business.
2. When tax can be applied
If the player is considered a professional player (the main income is from gambling).
If the winnings are business related (e.g. betting).
If international tax agreements apply when transferring large amounts from abroad.
If the transaction is under investigation under the laws of AML/CTF (Anti-Money Laundering and Counter-Terrorism Financing Act).
3. Taxation of operators
Licensed online casinos in Australia pay taxes and fees according to state jurisdiction:
- Northern Territory - NTRC license, Gross Gaming Revenue Tax.
- Victoria - tax on GGR and additional fees on Responsible Gambling programs.
- NSW - a similar tax plus contributions to community projects.
- These taxes are already built into the business model, so players get a net gain.
4. International winnings
If the casino is not licensed in AU, the transfer may attract the attention of the bank and the ATO.
For significant amounts (> 10,000 AUD), transactions are automatically checked within AML/CTF.
The ATO can ask for explanations of the source of funds, but taxation for ordinary players does not apply.
5. Practical recommendations to players
Store transaction and payment confirmations.
Use licensed AU casinos to simplify financial matters.
With a regular and large game, keep records in order to prove the status of an amateur, not a professional, if necessary.
Avoiding the use of offshore casinos without a transparent license may raise questions from the bank and regulators.
6. Case studies
A Sydney player won 50,000 AUD at a licensed NTRC casino - no tax applied.
A professional poker player in Melbourne who only earns income from tournaments has been found to be running a business and is required to pay tax.
The transfer of 100,000 AUD from an offshore casino led to an AML/CTF check, but no tax was charged.
Conclusion
For most Australians, online casino winnings are tax-free. Exceptions apply to professional players and special cases with international transfers. The main thing is to choose licensed sites and maintain financial transparency to avoid problems with the ATO.
