Gambling Tax in Canada
Last Updated on June 26, 2025 by Mary Henderson
Picture this – you just hit a huge jackpot, the confetti is still falling, you’re already dreaming of how you’ll spend the money, and… You wake up. The Taxman is knocking at the door.
My fellow Canadian gamblers, this article is for you.
Do you actually have to pay taxes on your winnings in Canada? Does this rule also apply to online casinos? This article includes anything you need to know about gambling tax in Canada. I’ll try to be as straightforward as possible.
Do You Have to Pay Taxes on Gambling Winnings in Canada?
I did my thorough research, and it turns out gambling winnings are generally not taxable in Maple Country.
Although playing casino games is considered a recreational activity, you’ll still have to cough up to the taxman if you’re a professional gambler with a consistent income from gambling. So, the conditions may change from case to case.
| Province | Tax Rate for Professional Gamblers |
|---|---|
| Ontario | 5.05% – 13.16%, based on income level |
| Quebec | Up to 14% on the first $49,275, higher rates for more income |
| British Columbia | 5.06% – 20.50%, depending on income bracket |
| Alberta | 10% on the first $142,292, up to 15% for higher incomes |
| Manitoba | 10.80% on earnings up to $36,842 |
| Saskatchewan | 10.50% on the first $49,720 of income |
| Nova Scotia | Starting at 8.79% for the first $29,590 |
| New Brunswick | Varying rates, starting at 9.4% on the first $47,715 |
| Prince Edward Island | Starting at 9.8% for the first $31,984 |
When Can You Keep Your Entire Jackpot?
Whether land-based or online casino, you can keep your entire jackpot without paying any taxes. But there is one condition. The casino has to be licensed. You can win at the lottery, casino games, or sports betting and keep your winnings as long as it is not a business activity.
But if you’re earning a living from gambling, meaning you’re a professional, the CRA (Canada Revenue Agency) will come after you. So, get ready to share your winnings with the government or consult a tax professional to advise you on your specific case.
The Tax Rules for Different Games
It is almost the same for all casino games, be it slots, table games, or live dealer games. If you’re an amateur, you’ll generally not be taxed, but if you’re a professional, you’ll share your winnings.
There is one exception you should be aware of. Poker bounces from one side to another. How come?
It goes as deep as the concept behind a poker game, which is usually a combination of skill and luck. So, there is a fine line between winning out of pure luck or winning based on your skillful strategy. And if you’re that good at poker, at least keep in mind how much you win. Someone might want to look into your pocket.
When Does the CRA Care About Your Winnings?
You can stay at ease; the CRA won’t get involved with you as long as you’re a casual gambler. Still, there are specific situations when the Canada Revenue Agency might show interest in your activity.
Undoubtedly, the first to be approached by CRA is professional gamblers who view gambling as their primary source of income. Do you gamble systematically, invest much time, use advanced strategies, and have a regular income out of gambling? Congratulations, my friend! You’re a professional gambler. And it doesn’t matter whether you play online or at a brick-and-mortar casino.
When it comes to crypto casinos, any crypto winning is viewed the same as FIAT. Casual players go untaxed, while those who sell and convert crypto get taxed for capital gain. For example, if you convert crypto into CAD, you need to report your profits or losses.
Do You Need to Pay Taxes on U.S. Winnings?
If you decide to try your luck abroad, as a Canadian player, you need to be aware of both Canadian and U.S. tax rules. We’ve cleared it up regarding the Canadian tax on gambling. Let’s see what the neighbouring country has to say.
Generally, the United States has a 30% tax on gambling winnings for non-U.S. citizens. And Canadians are no exception. So, if you win at a U.S. casino, lottery, or even online casino, you’ll have to pay the tax, or to be precise – they will deduct it automatically. But there are a few exceptions. If you win at baccarat, blackjack, craps, roulette, or big-6 wheel, you’ll be able to avoid the tax. But if you win at poker, slots, or lotteries, you’ll definitely pay that tax.
Now, the good news! Canadian players can reclaim part of the 30% tax. For that, they need to file a U.S. tax return. Is it worth the hassle? You tell me.
Can You Deduct Gambling Losses in Canada?
Oh, boy, that’s when paying all that taxes pays out.
So, if you’re a casual player, meaning gambling is a hobby, and you don’t pay taxes, you cannot deduct gambling losses. CRA also sees your activity as recreational.
But if you’re a professional gambler, gambling is your main source of income, your winnings are taxable, and you pay the taxes, then yes, you can deduct gambling losses.
Keeping Track of Your Winnings and Staying Tax-Compliant
Here are a few tips on enjoying your gambling winnings while not breaking the Canadian tax rules.
- Understand whether your gambling activity is taxable.
- Have a clear record of winnings and losses in case you’re ever requested to report it.
- Track gambling winnings from foreign countries.
- Separate your gambling winnings from other income sources to maintain a clear record for tax reporting.
- Claim losses if you’re a professional gambler.
- Request the account statement from the online casino (detailed history of your winnings and losses).
- Consult a tax professional to understand your obligations and reduce tax liability.
- Report large transactions. Deposits and withdrawals bigger than $10,000 must be reported.
- Sign up for updates from CRA to keep pace with the latest changes in law.
How to Stay Smart About Gambling Taxes in Canada
To sum it up, knowing the basics of gambling tax is essential if you want to play, win, and not have problems with the law.
It’s always good to know what you get into. So, start with understanding the tax rules for different players and casino games. Do extra research if you want to gamble abroad, even if it is an online casino, keep track of your activity, stay up to date with the latest tax rule changes, and don’t hesitate to request professional advice if ever in doubt.
This article is written by Mary, a seasoned professional with a rich background as a casino croupier now transitioned into a digital publisher with a keen focus on the online casino scene. With years of firsthand experience on the casino floor, Mary offers her unique perspective to the digital world of gambling.
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