Gambling tax Australia: are gambling winnings taxable?

Key facts

The ATO lists betting and gambling wins as amounts you do not include as assessable income, unless you operate a betting or gambling business.
Prizes in ordinary lotteries such as lotto draws and raffles, and game show prizes other than regular appearance fees, are generally not ordinary income either.
Crypto you win is not income, but if you keep it as an investment and later sell it, capital gains tax applies, with a cost base equal to its market value when you won it.
For capital gains tax, the ATO says to ignore gains and losses made directly from gambling.
Operators pay instead: every state charges bookmakers a point of consumption tax, from 15% in NSW, Victoria, WA, SA and Tasmania to 20% in Queensland and 25% in the ACT.

Are gambling winnings taxable in Australia?

No, not for most people. The Australian Taxation Office lists "betting and gambling wins (unless you operate a betting or gambling business)" among the amounts that are not assessable income. A pokies jackpot, a winning multi or a lucky trifecta does not go into your tax return as income, whatever its size.

The same ATO list also excludes earnings from a hobby and prizes and awards not related to your business.

What you won	ATO treatment	Source
Betting or gambling win (pokies, casino, sports, racing)	Not assessable, unless you run a betting or gambling business	ATO, What income to exclude
Lotto draw or raffle prize	Generally not ordinary income	ATO, crypto prizes and gambling winnings
Game show prize	Generally not ordinary income, but regular appearance fees are	ATO, crypto prizes and gambling winnings
Crypto won by betting or in a lottery	Not income; capital gain on the win itself disregarded	ATO, crypto prizes and gambling winnings
Later sale of crypto you won and kept	Capital gains tax applies to the disposal	ATO, crypto prizes and gambling winnings

The business exception

The one exception is if you operate a betting or gambling business. Then the wins are no longer excluded. The ATO's general list does not set out the tests in the same place, and whether betting is a business depends on your circumstances, so if you think it could apply to you, ask the ATO or a registered tax agent rather than guessing. For nearly everyone who has a punt or plays the pokies, the exception never comes up.

Crypto winnings: the one that catches people

Crypto is where tax can arrive later. The ATO says that if you win a crypto asset and then hold it as an investment, you will likely make a capital gain or loss when you dispose of it, and the cost base is its market value when you won it. The win is tax free; the growth afterwards is not.

The ATO's own worked example:

Step	Amount
Anwar pays for online lottery tickets	$100
He wins crypto worth	$20,000 (not ordinary income; cost base $20,000)
Two years later he sells it for	$30,000
Capital gain	$10,000
After the 50% CGT discount (held 12 months or more)	$5,000 net capital gain

The ATO also matches data from crypto designated service providers, covering the 2014-15 to 2025-26 income years, so sales through those providers can be matched to your tax return. If you have been paid winnings in crypto, keep a record of the value on the day you won it. Our guide to crypto casino withdrawals explains other risks with crypto payouts.

Losses: why you can't claim them

Because a recreational gambler's wins are not assessable income, there is no gambling income for losses to reduce. The ATO's capital gains rules point the same way: when working out capital gains tax, you ignore capital gains and capital losses made directly from gambling, or from games and competitions with prizes. The tax system neither shares in a recreational punter's wins nor softens the losses.

Who actually pays gambling tax: the operators

Australia collects gambling tax from the businesses that run gambling, not from players. Two kinds of tax matter most.

Point of consumption taxes on betting. Each state and territory taxes bookmakers on net wagering revenue from bets placed by people located there, no matter where the bookmaker is licensed. Rates and thresholds we confirmed with each revenue office:

Jurisdiction	Rate	Tax-free threshold	Notes
NSW	15%	$1,000,000 a year	10% from 1 Jan 2019, 15% from 1 Jul 2022
Victoria	15%	$1,000,000 a year	Rate set for 1 Jul 2024 to 30 Jun 2027
Queensland	20%	$300,000 a year	Betting Tax Act 2018
Western Australia	15%	$150,000 a year	Applies to bets by people located in WA
South Australia	15%	$150,000 a year	Since 1 Jul 2017
Tasmania	15%	$150,000 a year	Since 1 Jan 2020; free bets excluded
ACT	25%	$150,000 a year	25% since 1 Jul 2023
Northern Territory	Not confirmed	Not confirmed	See our NT page

On $10 million of net wagering revenue from one state, a bookmaker would pay about $1.35 million in NSW or Victoria, $1.48 million in WA, SA or Tasmania, $1.94 million in Queensland and $2.46 million in the ACT, in our calculation. The ACT gambling laws page explains how the ACT reached the highest rate.

Taxes on gaming machines. States tax pubs, clubs and casinos on gaming machine profits. Tasmania publishes a clear example: hotels pay 33.91% of gaming machine profits plus a 5% Community Support Levy, clubs 32.91% plus 4%, and the casinos 10.91% plus 3%. Queensland taxes lotto-style games at 73.48% of gross revenue. Across Australia, state and territory governments collected $5,805 million from gaming machines in 2024-25, according to the national gambling statistics.

Offshore sites and tax

The ATO's rule on wins does not depend on where you gambled. But tax is the smallest problem with an offshore casino. Online pokies and casino games cannot legally be offered to people in Australia, and if an offshore site refuses to pay, there is no Australian regulator to help. Our guide on whether online pokies are legal in Australia sets out the risks, and our gambling laws in Australia hub covers the rest of the legal picture.

When the money matters more than the tax

If you are wondering about tax because the sums involved are getting large, it may be worth stepping back. Gambling Help is free and confidential on 1800 858 858, and our gambling help page lists more options.

Frequently asked questions

Are gambling winnings taxable in Australia?

No, not for recreational gamblers. The ATO lists 'betting and gambling wins (unless you operate a betting or gambling business)' among the amounts you do not include as assessable income.

Do I have to declare a pokies jackpot or a big sports bet win?

For a recreational player, no: betting and gambling wins are not assessable income, so they do not go in your tax return as income. The exception is if you run a betting or gambling business.

Are lottery wins taxed in Australia?

Generally not. The ATO says prizes won in ordinary lotteries, such as lotto draws and raffles, are generally not considered ordinary income.

Is crypto won from gambling taxed?

The win itself is not income, and any capital gain on the win is disregarded. If you hold the crypto as an investment and later dispose of it, the gain or loss from that disposal falls under capital gains tax, using the market value when you won it as the cost base.

Can I claim gambling losses on tax?

For recreational gamblers, wins are not assessable income, so there is no gambling income for losses to be set against. For capital gains tax purposes, the ATO also says to ignore capital losses made directly from gambling.

Who pays gambling tax in Australia?

Mainly the operators. States and territories tax bookmakers on net wagering revenue from their residents, and tax pubs, clubs and casinos on gaming machine profits. In 2024-25, state and territory governments collected $5,805 million from gaming machines alone.