Do You Pay Tax on Casino Winnings in Australia?

The ATO's General Position on Gambling Winnings

The ATO states that gambling winnings are not taxable income for recreational players, and gambling losses are not tax-deductible. This applies whether you play at a land-based venue or an online casino, and regardless of how you deposit or withdraw — including through e-wallets.

The ATO's published guidance explains that if gambling is a hobby or pastime, any money you win is not ordinary income and does not need to be declared on your tax return. This is the position that applies to the vast majority of Australian casino players.

The reasoning is that recreational gambling lacks the systematic, commercial character that defines a business activity. Winning or losing at a casino is treated as a private recreational outcome, not a commercial transaction.

When Gambling Winnings Could Become Taxable Income

The recreational rule has a significant exception: if the ATO considers you to be carrying on a business of gambling, your winnings become assessable income and your losses may become deductible business expenses.

Determining whether someone is in the business of gambling is a question of fact and degree. The ATO looks at a combination of factors rather than any single test. Relevant considerations include whether you operate in a systematic, organised and businesslike way; whether you have a profit-making intention and a realistic prospect of profit; the scale and regularity of your activity; whether you keep detailed records; and whether gambling is your primary or a significant source of income.

Professional poker players and full-time sports bettors with documented systems have been found in some cases to be carrying on a business, making their winnings taxable. Casual or recreational casino play, even if frequent, does not automatically meet this threshold. Because the line is not always clear, individual circumstances matter greatly, and the ATO's guidance recommends seeking advice if you are unsure of your status.

Importantly, the payment method — including any e-wallet — plays no role in this analysis. Whether you receive winnings as a bank transfer, a Skrill balance or a Neteller payout, the tax treatment is determined by the nature of your gambling activity, not the channel through which money moves.

Operator-Side Taxes Are Separate From Player Tax

Australian states and territories impose taxes on gambling operators, not on players. The most relevant example for online gambling is the Point of Consumption Tax (POCT), which applies to operators based on the location of the player placing bets, regardless of where the operator is licensed or based.

POCT is a cost borne by the operator. It does not appear as a deduction from your winnings, and you have no obligation to account for it in your own tax affairs. It is entirely separate from any question of whether your winnings are assessable income.

Some players confuse operator-side taxes with a personal tax liability. They are different things. The operator's tax obligations do not create a tax obligation for you as a player.

Does the E-Wallet Payment Method Change Anything?

No. The ATO's position on gambling winnings is based on the nature of the activity, not the payment channel. Receiving a casino withdrawal into a Skrill, Neteller, MiFinity or Jeton account is functionally the same as receiving it into a bank account for tax purposes.

Some players wonder whether using an e-wallet creates a separate taxable event — for example, whether converting a wallet balance to AUD and transferring it to a bank account triggers income tax. It does not. The movement of money between a wallet and a bank account is not a taxable event in itself; what matters is whether the underlying gambling winnings were assessable income in the first place.

Currency conversion within a wallet (for example, converting USD winnings to AUD) may involve a foreign exchange gain or loss in some circumstances, but for recreational players this is unlikely to be material or assessable. If you regularly receive large sums in foreign currencies, this is a question worth raising with a registered tax agent.

Should You Keep Records of Your E-Wallet Casino Transactions?

Even if your winnings are not taxable, keeping records of your gambling transactions is a sensible practice for several reasons.

First, if the ATO ever queries your financial activity — for example, because large deposits appear in your bank account — having clear records showing the source of funds as gambling winnings (rather than undeclared income from another source) can resolve the matter quickly.

Second, if you are ever in a dispute with a casino over a withdrawal, your e-wallet transaction history is your primary evidence. E-wallet providers typically allow you to download transaction statements, and these records can support a complaint to the casino or a relevant dispute body.

Third, if your gambling activity grows in scale or regularity, records will help you and any tax adviser assess whether your situation has moved closer to the business-of-gambling threshold.

Useful records to keep include: e-wallet transaction statements showing deposits and withdrawals by date and amount; casino account statements where available; any correspondence with the casino about withdrawals or disputes; and screenshots of bonus terms or promotional conditions you relied on.

You do not need to keep records in any particular format, but dated, complete records are more useful than partial ones.

1. Download your e-wallet transaction history regularly (most providers offer CSV or PDF exports).
2. Save casino account statements or withdrawal confirmations when you cash out.
3. Note the date, amount and casino name for each significant transaction.
4. Keep records for at least five years, which is the standard ATO record-keeping period for individuals.
5. If your gambling activity increases significantly in scale, consult a registered tax agent to reassess your position.

When to Seek Professional Tax Advice

This page explains the general ATO position as published on ato.gov.au. It is not tax advice, and it cannot account for your individual circumstances.

You should consult a registered tax agent if: you gamble regularly and it represents a significant or primary source of income; you are unsure whether your activity could be characterised as a business; you receive winnings in foreign currencies in large amounts; you have received a query or audit notice from the ATO relating to gambling income; or you want certainty about your specific situation rather than a general explanation.

A registered tax agent is bound by the Tax Practitioners Board's code of professional conduct and can give you advice that is specific and legally protected. You can search for a registered agent on the Tax Practitioners Board register at tpb.gov.au.