Australia is home to a booming casino and online gambling industry, offering everything from glamorous gaming venues to high-tech online pokies. While Australians love a punt, one of the most common questions asked by players is: Are casino winnings taxed in Australia? The answer is both simple and nuanced, depending on your gambling habits, profession, and whether you’re playing at home or overseas.
In this updated 2025 guide, we’ll explore how gambling winnings are taxed in Australia, what obligations players have (if any), how casinos are taxed, and what international players need to know when gambling Down Under.
1. Overview of the Australian Casino Industry
Australia features a vibrant and regulated gambling environment. Casinos like Crown Melbourne, The Star Sydney, and SkyCity Adelaide are not only local hotspots but also global attractions. Australians consistently rank among the highest spenders on gambling per capita, making the sector a major contributor to the national and state economies.
Each state and territory governs gambling independently, resulting in varied laws and tax rates across jurisdictions. This decentralized model applies to both land-based and online gambling operators, and directly affects how casino winnings and taxation are handled.
2. Are Casino Winnings Taxed in Australia?
Short Answer: No – For Most Players
In 2025, Australian residents do not pay tax on casino or pokie winnings—unless gambling is part of a business operation. For casual and recreational players, any money won at casinos, betting shops, or online platforms is completely tax-free.
Why Are Winnings Tax-Free?
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Entertainment Value: The Australian Taxation Office (ATO) views gambling as a recreational activity, not a reliable or consistent income stream.
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Losses Outweigh Gains: Statistically, most gamblers lose more than they win, making it administratively inefficient and financially unfair to tax intermittent winnings.
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No “Professional Gambler” Status: Unlike jurisdictions such as the United States, Australia does not legally recognize gambling as a profession under normal circumstances.
Covered Gambling Formats
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Pokies (slot machines)
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Table games (blackjack, roulette, baccarat)
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Sports betting
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Horse racing
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Lottery and keno
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Poker (live and online)
3. When Gambling Becomes a Business: Taxation of Professional Gamblers
There’s one important exception: if your gambling activities resemble a structured business operation, the ATO might classify you as a professional gambler. In this scenario, your winnings could become assessable income under Australian tax law.
Key Indicators of a Professional Gambling Operation
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Regularity: Do you gamble consistently and often?
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Profit Motive: Is your primary intent to generate income rather than just have fun?
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Structure: Do you maintain records, use complex betting systems, or invest in data analysis?
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Sole Income Source: Is gambling your main or only source of income?
Consequences of Professional Status
If the ATO deems your gambling to be a business, you must:
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Report gambling income in your annual tax return.
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Pay income tax at your marginal tax rate.
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Declare all associated expenses and profits.
This classification is rare and typically applies only to individuals or groups running high-frequency or algorithmic-based betting operations.
4. How Are Casinos Taxed in Australia?
While players usually enjoy tax-free winnings, the government does not lose out entirely. In fact, casino operators are taxed extensively, with levies imposed on their Gross Gaming Revenue (GGR)—the amount wagered minus payouts to winners.
Main Tax Categories for Operators
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Table Game Duty: Percentage of revenue from games like roulette and blackjack.
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Electronic Gaming Machine Duty (Pokies): Taxed at a state-specific rate.
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High Roller & VIP Levies: Especially in major cities like Sydney or Melbourne.
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GST (Goods and Services Tax): Gambling services incur a 10% GST.
These taxes are collected by individual state governments and fund public programs, infrastructure, and responsible gambling initiatives.
5. State-by-State Casino Tax Rates in Australia (2025)
Here’s a simplified table showcasing how operator tax rates differ by region:
| State/Territory | Table Game Duty | Pokie Duty (EGMs) | Additional Levies |
|---|---|---|---|
| Victoria | 21.25% | Varies | GST applies |
| NSW | 20.25% | 20.91% (2023), rising to 22.91% by 2027 | 35% levy on large operators like The Star |
| Queensland | 20% | Variable by region | None listed |
| SA / WA / NT / ACT | Varies | Varies | Local variations apply |
These tax rates are subject to change and may differ based on licensing agreements or the size of the casino.
6. Online Gambling Taxation: What You Need to Know
Online gambling continues to grow in popularity in Australia. Whether you’re spinning digital pokies or joining live dealer games, the same taxation rules apply.
Online Casino Winnings
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Still Tax-Free for Players: You do not pay tax on online casino wins.
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GST Applies to Operators: Licensed operators must pay 10% GST on gambling services.
Offshore Gambling Considerations
Some Australians play at offshore casinos not licensed domestically. While player winnings are still not taxed, using offshore sites may carry risks such as:
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Reduced legal protections
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Delays or disputes in withdrawals
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Lack of responsible gambling support
7. International Visitors: Are Casino Winnings Taxed?
If you’re a tourist visiting Australia, you’ll be happy to know that most casual gambling winnings are not taxed. However, the ATO does impose withholding taxes in specific scenarios—primarily involving junket operations and foreign gambling businesses.
Key Points for Foreign Players
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No tax for casual wins in pokies or table games.
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3% withholding tax may apply in certain structured, high-stakes arrangements.
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Your home country’s tax laws apply. U.S. residents, for instance, must report overseas gambling winnings to the IRS.
Always check with a tax advisor in your home country if you plan to win big while visiting Australia.
8. Key Takeaways
Here’s what every gambler in Australia should know about taxes:
✅ Winnings from casino games, lotteries, and sports bets are tax-free for casual players.
⚠️ Professional gamblers may be subject to income tax.
🏛️ Casinos are taxed on revenue, not players’ winnings.
🌐 Online winnings are also tax-free, but only for personal use.
🌍 International players must check their domestic laws for tax obligations on Australian winnings.
9. FAQ: Australian Gambling Winnings and Taxation
Q1: Do I need to report my casino winnings to the ATO?
No. Unless you’re classified as a professional gambler, there’s no need to report or pay tax on gambling winnings.
Q2: Can I claim gambling losses on my tax return?
No. Since winnings are not considered income, gambling losses are not deductible.
Q3: Are online casino wins treated differently from land-based wins?
No. The ATO applies the same rules to both.
Q4: I’m in a gambling syndicate—what now?
If your syndicate resembles a business (structured, profit-driven), it may face tax obligations. Always keep accurate records and consult a tax expert.
Q5: Do online gambling operators pay tax?
Yes. Licensed operators in Australia are subject to GST and state-imposed taxes.
10. Conclusion
Australia remains one of the few countries where gambling winnings are generally not taxed, making it a popular destination for tourists and a favorable environment for locals who enjoy placing a bet. The responsibility of taxation falls primarily on casinos and gaming operators, ensuring Australian players can enjoy their wins without fearing the taxman.
However, anyone regularly profiting from gambling—especially in a structured or full-time capacity—should be aware of the risks of being classified as a professional gambler by the ATO. If in doubt, consult a registered tax agent or the ATO directly.
Disclaimer: This guide is for informational purposes only. Always seek advice from a certified tax professional regarding your specific situation.
