The difference between players and professional players in terms of tax
The difference between players and professional players in terms of tax
Current on: 11 August 2025
Short conclusion
In Australia, the taxation of winnings depends on player status. An amateur who plays for fun does not pay taxes on winnings. A professional for whom gambling is the main source of income is obliged to declare profit and pay tax as from commercial activities.
1. ATO approach to determining player status
The Australian Taxation Office (ATO) does not have one formal definition, but uses a set of criteria:
2. Regular players (amateurs)
They play irregularly or as a form of leisure.
Wins and losses are not taken into account in tax reporting.
They do not keep professional betting records and do not receive stable income from the game.
Even large one-off winnings (like the jackpot) are not taxed.
Example:
3. Professional players
The main activity is gambling (casino, poker, sports betting).
The game is played regularly and systematically, with the expectation of profit.
Income is declared as business income.
Ability to write off costs associated with activities (tournament contributions, travel, analysis software).
The tax rate depends on the total amount of income and is applied on a scale for individuals or businesses.
Example:
4. Boundary situations
The player can start as an amateur, but with an increase in the frequency and volume of winnings, ATO can retrain him as a professional.
Using casinos as a source of regular income through bonus hunting or arbitration also increases the risk of commercial recognition.
5. International nuances
For professional players, winnings from overseas casinos and tournaments are also taxed in Australia.
International double tax treaties may reduce or eliminate repeat tax if it has been paid abroad.
6. Recommendations to players
Amateurs: Record that the game is entertaining and keep deposit/withdrawal history for confirmation.
Professionals: keep full financial records, use accounting services and submit declarations on time.
If in doubt: Request written clarification from ATO (private ruling).
Conclusion
The main difference between an amateur and a professional in Australia is the purpose and consistency of the game. Amateurs do not pay tax on winnings, professionals are required to declare income and pay tax as if from a business. Proper status identification avoids ATO issues and penalties.
Current on: 11 August 2025
Short conclusion
In Australia, the taxation of winnings depends on player status. An amateur who plays for fun does not pay taxes on winnings. A professional for whom gambling is the main source of income is obliged to declare profit and pay tax as from commercial activities.
1. ATO approach to determining player status
The Australian Taxation Office (ATO) does not have one formal definition, but uses a set of criteria:
- Regularity and volume of bets.
- The purpose of participation in gambling (entertainment or income).
- Availability of strategic planning, investment in training, use of professional tools.
- Main source of livelihood.
2. Regular players (amateurs)
They play irregularly or as a form of leisure.
Wins and losses are not taken into account in tax reporting.
They do not keep professional betting records and do not receive stable income from the game.
Even large one-off winnings (like the jackpot) are not taxed.
Example:
- The Brisbane player won 70,000 AUD in online slots, playing every few weeks. The ATO does not treat it as a business, there is no tax.
3. Professional players
The main activity is gambling (casino, poker, sports betting).
The game is played regularly and systematically, with the expectation of profit.
Income is declared as business income.
Ability to write off costs associated with activities (tournament contributions, travel, analysis software).
The tax rate depends on the total amount of income and is applied on a scale for individuals or businesses.
Example:
- A professional poker player from Melbourne, who participates in tournaments all year round and receives more than 150,000 AUD a year from this, is required to pay tax as on ordinary income.
4. Boundary situations
The player can start as an amateur, but with an increase in the frequency and volume of winnings, ATO can retrain him as a professional.
Using casinos as a source of regular income through bonus hunting or arbitration also increases the risk of commercial recognition.
5. International nuances
For professional players, winnings from overseas casinos and tournaments are also taxed in Australia.
International double tax treaties may reduce or eliminate repeat tax if it has been paid abroad.
6. Recommendations to players
Amateurs: Record that the game is entertaining and keep deposit/withdrawal history for confirmation.
Professionals: keep full financial records, use accounting services and submit declarations on time.
If in doubt: Request written clarification from ATO (private ruling).
Conclusion
The main difference between an amateur and a professional in Australia is the purpose and consistency of the game. Amateurs do not pay tax on winnings, professionals are required to declare income and pay tax as if from a business. Proper status identification avoids ATO issues and penalties.
