Are Casino Winnings Taxable in Canada?

Let’s start with the most common question: Are gambling winnings taxable in Canada?

For recreational players, the answer is no. In most cases, if you’re playing online slots or poker for fun, the Canada Revenue Agency (CRA) considers your winnings a windfall. That means they’re tax-free and don’t need to be reported.

So, if you’re betting for entertainment, you can relax—your wins are all yours. That said, it’s important to know the rules in case your gambling habits start looking more like a business.

Tax Implications for Professional Gamblers

When gambling becomes your main source of income, the rules change.

According to professional gambler tax guidelines in Canada, gambling income must be reported as taxable.

The CRA considers several factors to determine if you’re a professional player:

  • Frequency and consistency of your gambling activity;
  • Skill level and strategy used;
  • Intent to earn a profit;
  • Record-keeping and financial tracking.

If you’re classified as a professional, you must report both income and expenses, similar to running a business. This includes tournament fees, travel, and yes, even losses.

Reporting Gambling Winnings and Losses

For casual players, there’s no need to report winnings or losses, because there’s nothing to tax.

But if you gamble for a living, reporting gambling income in Canada is a must. You’ll need to declare all profits and can also deduct eligible expenses.

As for losses, only professional gamblers can use a gambling losses tax deduction. Losses can’t be claimed on your tax return if you’re a weekend warrior playing for fun.

Taxation of Foreign Gambling Winnings

Heading to Las Vegas? Winning abroad can trigger tax rules you didn’t expect.

Tax on US casino winnings for Canadians is a big one: the IRS withholds 30% on many gambling wins by non-residents, including Canadians.

However, under the Canada–U.S. Tax Treaty, you may be able to recover some or all of that money by filing IRS Form 1040NR and Form 8802.

Bonus Hunt recommends speaking with a cross-border tax specialist if your foreign gambling winnings are significant.

Provincial Variations in Gambling Taxation

While Canadian gambling tax laws in 2025 are mostly uniform federally, each province handles gambling slightly differently, especially regarding lottery winnings or provincial online casinos.

That said, the short answer to “Are lottery winnings taxed in Canada?” is no, regardless of which province you live in. Whether it’s Lotto Max, 6/49, or a provincial raffle, the money is yours tax-free.

Just remember: if you’re making a living from gambling, provincial tax agencies might want a closer look, especially in Quebec and Ontario.

Non-Resident Gambling Winnings in Canada

Canada welcomes tourists and foreign players to its casinos, online and off. And here’s the good news: Canada does not tax gambling winnings for non-residents. If you’re visiting from abroad and win big, you get to keep the full amount.

Canada’s non-resident gambling tax rule makes it an attractive destination for international gamblers, particularly from the U.S. and Europe.