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Are Gambling Winnings Taxed in Australia? A Simple Guide

Just had a big win on the pokies and wondering if the tax office will want a share? For most Australian players the answer is good news. This guide explains how gambling winnings are generally treated in Australia, the exceptions to know about, and what to keep in mind when you withdraw.

Please note

This page is general information only and is not tax or financial advice. Everyone's situation is different. For advice about your own circumstances, speak to a registered tax agent or check the Australian Taxation Office website at ato.gov.au.

The short answer

In Australia, gambling winnings are generally not taxed for recreational players. Winnings from pokies, casino games, lotteries and betting are usually treated as the result of luck rather than income, so they are not normally included in your taxable income.

That applies whether you win AUD 50 or AUD 50,000, as long as gambling is a hobby for you and not a business.

Recreational vs professional gamblers

 Recreational playerProfessional gambler
How gambling is treatedA hobby or entertainmentRun like a business
Winnings taxedGenerally noMay be treated as income
Losses deductibleGenerally noMay be claimable

Being treated as a professional gambler is rare. It usually involves things like gambling as your main source of income, operating in a systematic and organised way, and treating it as a business. If you think this could apply to you, get professional advice.

Things that can still be taxed

Interest on your winnings

If you put your winnings in a bank account, the interest you earn is normally taxable income, just like interest on any other savings.

Investment earnings

If you invest your winnings, for example in shares or property, the income or capital gains from those investments can be taxable.

Government payments

If you receive government payments, a large win could affect your assets or eligibility. Check with Services Australia about any reporting rules that apply to you.

Smart steps after a big win

Gambling winnings tax FAQ

Do I pay tax on pokie winnings in Australia?

Generally no. For recreational players, pokie winnings are not usually treated as taxable income.

Do I need to declare casino winnings on my tax return?

Recreational players generally do not need to include gambling winnings as income. If you are unsure about your situation, check with a registered tax agent.

Can I claim my gambling losses?

Recreational players generally cannot claim gambling losses as a tax deduction.

Does IW99 take tax from my withdrawal?

No. IW99 does not deduct tax from player withdrawals.

Is the interest on my winnings taxed?

Usually yes. Interest earned on money in the bank is normally taxable income, wherever the money came from.

More from IW99

Ready to cash out?

Follow our step-by-step guide to withdraw your winnings to your bank account.

How to withdraw

18+ only. General information only, not tax advice. Please play responsibly and set limits that work for you.