Is Gambling Money Taxed in Australia?


Gambling taxation varies globally, with countries like the US imposing taxes on gambling winnings. However, Australia takes a unique approach, focusing on corporate taxation rather than individual earnings from gambling.

Money Taxed

Comparison of Gambling Taxation: Australia vs. the US

In the US, gambling winnings are subject to taxation, often at high rates. Conversely, Australia primarily taxes gambling at the corporate level, distinguishing itself from the individual-centric approach of the US.

Australia’s Perspective on Gambling

The Australian government perceives gambling as a game of luck rather than a legitimate source of income. As such, it categorizes gambling as a hobby or form of entertainment, not a profession.

Controversies and Debates on Gambling Taxation

Some argue that if gamblers can’t deduct their losses, they shouldn’t be taxed on their winnings. However, this viewpoint is met with counterarguments and differing perspectives.

Recent Developments in Australian Gambling Taxation

A task force within the Australian Taxation Office (ATO) has been established to target high-level gamblers, reflecting ongoing efforts to regulate gambling activities and ensure compliance with tax laws.

The Tax Impaction on the Sports Betting Industry in Australia

The impact on jobs is also likely to be negative, as betting companies look to reduce costs. This may include reducing staff numbers and/or relocating operations to lower-cost jurisdictions.

The increase in tax may also have implications for the racing industry. Some of the revenue from betting on racing is currently directed to the racing industry, but a reduction in betting activity may lead to a reduction in this revenue. This could have flow-on effects on the entire racing industry, including horse owners, trainers, jockeys, and other workers.

How Gambling Winnings are Taxed in the U.S.A

In the U.S., a casino will deduct 24% when you win a significant amount of money for taxes. This is recorded in a copy of the IRS form W-2G that you will receive. The taxable amount from the winnings depends on the games played. For instance, it is $1, 200 for slots and bingo, $1, 500 for keno, and $5,000 for sweepstakes, lotteries, and wagering pools.

24% is only an estimated tax. Gamblers may still find themselves owing more or getting back some of it depending on the total income for the year. For professional gamblers, their winnings are considered as regular income earned. They are taxed at the normal income tax rate. Nonresidents are also required to report their winnings on form 1040NR. Their winnings are subject to a flat tax rate of 30%.


Australia’s approach to gambling taxation is distinct, emphasizing corporate taxation and viewing gambling as a recreational activity rather than a means of generating income. As debates persist and regulations evolve, the future of gambling taxation in Australia remains a topic of interest and discussion.