What Aussie Players Really Need to Know About Gambling and Tax

One of the most common questions Australian casino players ask—especially after a big win—is simple: Do I need to pay tax on my gambling winnings? The short answer is reassuring: if you’re a casual player, no, you don’t. But there are important exceptions, especially when large, repeated winnings or international platforms are involved.

Understanding how casino tax works in Australia means separating three different areas: personal player obligations, how casinos themselves are taxed, and how foreign-based winnings might be treated. Each comes with its own set of legal considerations.

Whether you’re spinning reels at a pub pokie, cashing out from an online site, or withdrawing crypto winnings from a global platform like Royal Reels, it pays to know where you stand from a legal perspective—before the ATO starts asking questions.

Do You Pay Tax on Casino Winnings in Australia?

For individuals, the Australian Taxation Office (ATO) does not treat gambling winnings as taxable income. This is because gambling is legally considered a form of recreation, not a profession or trade—unless you’re operating as a business (more on that later).

So if you hit a jackpot on online pokies or win at blackjack in a legal casino, those winnings are yours—tax free. This applies across the board for:

• Online casino wins from Australian-licensed sites
• Winnings from sports betting, horse racing, or greyhounds
• Land-based casino wins including pokies, roulette, and baccarat

There’s no need to declare these amounts on your tax return, nor are Australian casinos required to report them to the ATO on your behalf.

When Gambling Winnings Might Be Taxable

The only situation where casino or gambling earnings might become taxable is if you’re seen to be running a business operation around gambling. That’s a very high bar. It could include:

• Professional poker players who earn consistent income through tournaments
• Syndicates or betting systems with structured strategy and external investors
• Repeat traders using matched betting as a primary source of income

In these edge cases, the ATO may investigate and decide that your winnings fall under business or investment income. That would make them taxable. But for 99% of players, especially those using online casino platforms casually, this is not an issue.

How Are Casinos Taxed in Australia?

While individual players are off the hook, the casino industry certainly isn’t. Both online and land-based operators pay significant tax in Australia—though the rates and models vary by state and type of game.

For example:

• New South Wales: Pokies revenue is taxed progressively between 27.5% and 60% depending on turnover.
• Victoria: Crown Casino pays both a flat rate and a per-machine levy annually.
• Northern Territory: Online operators licensed there pay a 10% point-of-consumption tax.

Online casinos based offshore don’t pay Australian tax unless they’re locally licensed. That’s one reason why many players prefer sites like Royal Reels, which are structured to comply with relevant gaming and tax obligations while still offering competitive odds and bonuses.

Do You Pay Tax If You Use Cryptocurrency?

Crypto adds complexity, but the tax treatment still depends on what you’re doing. If you use Bitcoin, Ethereum, or other digital currencies to deposit, wager, and withdraw at an online casino, here’s what matters:

• If your winnings remain in crypto and appreciate in value, **that gain could be subject to capital gains tax (CGT)**.
• If you immediately withdraw your crypto as AUD at market value, **there is generally no CGT**, especially if you’re not trading professionally.
• If you receive a bonus or referral reward in crypto, it might be considered income and taxed as such.

Keep records of your crypto movements if you're playing on international platforms. For fully AUD-based casinos, this concern is removed, making local platforms a simpler choice.

Are International Casino Winnings Taxable?

Winnings from offshore casinos are also not taxed in Australia—as long as you remain a private, recreational player. However, international platforms may withhold tax themselves depending on their jurisdiction.

For example, the US requires 30% withholding on gambling winnings for foreign nationals. If you win from a US-based tournament or sweepstakes site, you might need to file a foreign tax claim. For European casinos, tax treatment varies.

Australia doesn’t require you to report these wins—unless you’re converting large sums back to AUD, triggering suspicion under anti-money laundering thresholds. That’s when documentation and transparency become essential.

Record-Keeping and Safe Practice

Even if you’re not legally required to declare winnings, keeping accurate records is a smart move. This includes:

• Date, platform, and amount of any large wins or withdrawals
• Proof of deposit and withdrawal methods
• Crypto-to-AUD conversions (if applicable)

It’s especially helpful if you ever face an audit or need to explain a sudden bank deposit over $10,000. Casinos like Royal Reels offer downloadable transaction histories, making this easy to manage.

Summary: What You Need to Know

For most Australian casino players in 2025, the news is good: your winnings are tax-free. There are no forms, no obligations, and no deductions. But the moment you step into business territory—high-volume poker, syndicate betting, matched systems—the rules change fast.

Likewise, international winnings, crypto gains, or rewards paid in tokens can trigger tax obligations if not managed carefully. When in doubt, record everything and talk to a registered tax agent with gambling knowledge.

And remember: casinos pay tax so you don’t have to. Choose platforms like Royal Reels that meet legal and operational standards, giving you peace of mind along with your payout.