Tax differences between gambling and sports betting
Tax differences between gambling and sports betting
Current on: 11 August 2025
Short conclusion
In Australia, gambling and sports betting winnings for amateurs are tax-free. However, professional players in both areas pay income tax, with sports betting more often falling under the signs of business activity due to a systematic approach and analytics.
1. General principles of taxation
Amateurs: Winnings are not included in taxable income.
Professionals: Profits are taxed at rates for individuals or registered businesses.
The key is to determine the nature of the activity: hobby or business.
2. Gambling (casino, slots, lotteries)
Amateurs: No tax, even on big jackpots.
Professionals: Taxation applies if the game is the main source of income.
Signs of a professional:
3. Sports betting
Amateurs: Winnings are tax-free.
Professionals: Income is taxable.
Why is it more often classified as a business:
4. Differences in payment control
Casino and slots: payments are often recorded inside the gaming platform and transferred to the bank one-time.
Sports betting: There may be frequent inference, raising the possibility of interest from AUSTRAC and the ATO.
International platforms: offshore bookmakers are more common in betting, which requires attention to currency transfers and their declaration.
5. Examples of taxation
The player won 200,000 AUD in online slots by playing a couple of times a month - no tax applies.
Professional bettor earns 150,000 AUD per year on arbitration rates - tax is mandatory.
The betting lover made a good prediction of 50,000 AUD and did not play again - no tax is charged.
6. Recommendations
Clearly define your status: hobby or business.
In sports betting, with a systemic profit, consider the tax obligation.
Keep all proof of winnings and expenses, especially when working with foreign bookmakers.
If in doubt, request private ruling from the ATO.
Conclusion
Although both casino and sports betting are tax-free for amateurs in Australia, sports betting is more often seen as a potential business activity by the ATO. It is important for players to understand the classification criteria and prepare for declaring income if bets become a systemic source of profit.
Current on: 11 August 2025
Short conclusion
In Australia, gambling and sports betting winnings for amateurs are tax-free. However, professional players in both areas pay income tax, with sports betting more often falling under the signs of business activity due to a systematic approach and analytics.
1. General principles of taxation
Amateurs: Winnings are not included in taxable income.
Professionals: Profits are taxed at rates for individuals or registered businesses.
The key is to determine the nature of the activity: hobby or business.
2. Gambling (casino, slots, lotteries)
Amateurs: No tax, even on big jackpots.
Professionals: Taxation applies if the game is the main source of income.
Signs of a professional:
- Regular play.
- Clear betting strategy.
- Financial accounting.
- Feature: ATO less often classifies a casino game as a business if there are no long-term guaranteed profit strategies.
3. Sports betting
Amateurs: Winnings are tax-free.
Professionals: Income is taxable.
Why is it more often classified as a business:
- Ability to predict outcomes based on statistics.
- Use of analytics and specialized tools.
- Frequent and regular bet on different events.
- Examples of activities with taxation: arbitration rates, trading on betting exchanges, long-term analytical strategies.
4. Differences in payment control
Casino and slots: payments are often recorded inside the gaming platform and transferred to the bank one-time.
Sports betting: There may be frequent inference, raising the possibility of interest from AUSTRAC and the ATO.
International platforms: offshore bookmakers are more common in betting, which requires attention to currency transfers and their declaration.
5. Examples of taxation
The player won 200,000 AUD in online slots by playing a couple of times a month - no tax applies.
Professional bettor earns 150,000 AUD per year on arbitration rates - tax is mandatory.
The betting lover made a good prediction of 50,000 AUD and did not play again - no tax is charged.
6. Recommendations
Clearly define your status: hobby or business.
In sports betting, with a systemic profit, consider the tax obligation.
Keep all proof of winnings and expenses, especially when working with foreign bookmakers.
If in doubt, request private ruling from the ATO.
Conclusion
Although both casino and sports betting are tax-free for amateurs in Australia, sports betting is more often seen as a potential business activity by the ATO. It is important for players to understand the classification criteria and prepare for declaring income if bets become a systemic source of profit.
