How Australian casino winnings tax works
How Australian casino winnings tax works
Current on: 11 August 2025
Short conclusion
In Australia, most casino winnings, including online and offline, are not subject to income tax for private gamblers, as gambling is seen as entertainment rather than a source of regular income. However, there are exceptions related to professional play and certain types of prizes.
1. General principle of winnings taxation
There is no tax for amateurs - a player who does not make money on the game systematically is exempted from paying tax on winnings.
The casino pays turnover tax - the tax burden falls on the operator, not the client.
Income tax does not apply - winnings are not included in the annual tax return.
2. When tax can be applied
1. Professional game
If a player is seen as running a gambling business (main income, systematic strategy, large turnovers), the income can be declared taxable.
2. Non-cash prizes
The cost of a car, travel or other material prize may be taxable depending on the circumstances.
3. Gain on winnings investment
Interest or gain on invested won funds is taxable.
3. Features by state and territory
Australia has no federal tax on winnings for individuals.
States and territories only tax operators (Gaming Tax), not players.
The rules are the same for all regions - from Victoria to the Northern Territory.
4. Taxation in offshore casinos
If a player receives a win from an unlicensed overseas operator, Australian tax law does not require payment of tax on the win itself.
However, when transferring large amounts, it is possible to check the source of funds by banks and AUSTRAC (anti-money laundering control).
5. ATO (Australian Taxation Office) position
The ATO sees gambling as entertainment rather than a form of earning for most citizens.
Professional players (mainly poker or betting) can be considered as leading a business, with a mandatory tax payment.
Ordinary casino patrons pay no tax.
6. Examples of situations
7. Recommendations to players
Keep records of wins and losses if you play on a regular basis.
When receiving large prizes, clarify tax liabilities.
Avoid unlicensed operators so as not to encounter transfer locks.
If in doubt, consult with an accountant or tax specialist.
Conclusion
In Australia, casino winnings for ordinary gamblers are tax-free, making gambling more attractive compared to some other countries. But with a professional game or receiving prizes in non-monetary form, tax obligations may arise. Understanding these nuances helps to avoid problems with the ATO and keep the winnings in full.
Current on: 11 August 2025
Short conclusion
In Australia, most casino winnings, including online and offline, are not subject to income tax for private gamblers, as gambling is seen as entertainment rather than a source of regular income. However, there are exceptions related to professional play and certain types of prizes.
1. General principle of winnings taxation
There is no tax for amateurs - a player who does not make money on the game systematically is exempted from paying tax on winnings.
The casino pays turnover tax - the tax burden falls on the operator, not the client.
Income tax does not apply - winnings are not included in the annual tax return.
2. When tax can be applied
1. Professional game
If a player is seen as running a gambling business (main income, systematic strategy, large turnovers), the income can be declared taxable.
2. Non-cash prizes
The cost of a car, travel or other material prize may be taxable depending on the circumstances.
3. Gain on winnings investment
Interest or gain on invested won funds is taxable.
3. Features by state and territory
Australia has no federal tax on winnings for individuals.
States and territories only tax operators (Gaming Tax), not players.
The rules are the same for all regions - from Victoria to the Northern Territory.
4. Taxation in offshore casinos
If a player receives a win from an unlicensed overseas operator, Australian tax law does not require payment of tax on the win itself.
However, when transferring large amounts, it is possible to check the source of funds by banks and AUSTRAC (anti-money laundering control).
5. ATO (Australian Taxation Office) position
The ATO sees gambling as entertainment rather than a form of earning for most citizens.
Professional players (mainly poker or betting) can be considered as leading a business, with a mandatory tax payment.
Ordinary casino patrons pay no tax.
6. Examples of situations
| Situation | Tax on winnings | Comment |
|---|---|---|
| Player won 5,000 AUD in slots at Crown Melbourne | Amateur game | |
| Professional Poker Player Wins 100,000 AUD | Recognized as Business Activity | |
| Prize - car worth 30,000 AUD | /partially | Possible valuation in taxable income |
| Offshore Casino Win 20,000 AUD | But Bank May Request Origination of Funds |
7. Recommendations to players
Keep records of wins and losses if you play on a regular basis.
When receiving large prizes, clarify tax liabilities.
Avoid unlicensed operators so as not to encounter transfer locks.
If in doubt, consult with an accountant or tax specialist.
Conclusion
In Australia, casino winnings for ordinary gamblers are tax-free, making gambling more attractive compared to some other countries. But with a professional game or receiving prizes in non-monetary form, tax obligations may arise. Understanding these nuances helps to avoid problems with the ATO and keep the winnings in full.
