Do You Pay Tax on Gambling Winnings? UK, US, Ireland, Canada and Australia Compared

Whether you pay tax on gambling winnings depends heavily on where you live. In several countries recreational winnings are tax-free, while in the United States they are taxable income. This guide compares the UK, the US, Ireland, Canada and Australia. It is general information, not tax advice.

United Kingdom

Gamblers in the UK do not pay income tax on winnings from betting, casino games, bingo or the National Lottery. Operators pay gambling duties instead. You cannot offset gambling losses against other income. HMRC’s published view is that betting is not a trade: having a system, being skilful or earning a living from betting does not by itself make gambling a trading activity. Interest you earn on a large win held in a bank account is taxable like other savings interest, and gifts of winnings to others may have inheritance tax implications.

United States

All gambling winnings are taxable income at the federal level, and most states tax them as well, whether you win at a casino, online, at the track or in a lottery.

• Payers issue Form W-2G when winnings reach set thresholds that depend on the type of game, and may withhold tax (the standard rate is 24%) from large wins.
• You must report winnings even if you do not receive a form.
• For tax years beginning after 31 December 2025, you can deduct only 90% of your wagering losses, and the deduction can never exceed your wagering winnings. Recreational gamblers generally need to itemise deductions to claim it. Because of the 90% limit, a year in which you only break even can still produce a tax bill.
• Keep a record of dates, amounts and locations for every session, because the IRS expects documentation.

Thresholds change, so check current IRS guidance.

Ireland

Gambling winnings are generally not taxed in the hands of players in Ireland. Betting operators pay tax on their turnover. Professional gambling is treated differently in principle, but it is rare. Check with Revenue if your situation is unusual.

Canada

Recreational gambling winnings, including lottery prizes and casino wins, are generally not taxable. If you gamble as a business, with a systematic, profit-driven operation, the Canada Revenue Agency may treat winnings as business income, but this is uncommon. Interest or investment income earned on winnings is taxable.

Australia

Winnings from pokies, lotteries, casinos and sports betting are generally not taxable for recreational gamblers, and losses are not deductible. If you gamble in a systematic, business-like way with the aim of profit, the Australian Taxation Office may classify you as a professional gambler, which changes your obligations. Interest earned on winnings is taxable. State governments tax operators.

The professional gambler exception

In the UK, HMRC’s view is that a gambler’s winnings are not trading income even when the person bets systematically or earns a living from it. The distinction is between a gambler and a bookmaker, or someone paid for a service such as a paid appearance. In Ireland, Canada and Australia, tax authorities can in principle treat gambling as a business where it is run in an organised, profit-seeking way, but this is rare and the details depend on the facts. In the US, professional gamblers can deduct business expenses, but winnings are taxable either way.

Other rules that protect players

• Credit cards: gambling firms licensed in Great Britain may not accept credit card deposits (since April 2020). Australia has banned credit cards for licensed online wagering since 2024, and Ireland’s new law bans credit-funded gambling.
• Affordability and identity checks: licensed operators may ask for proof of age, identity and sometimes source of funds before paying out large sums.

See also how bonuses actually work for how bonus winnings are held back by wagering requirements.

Keep records

Whatever your country, keeping a record of what you stake and win makes any tax question simpler and keeps spending visible. Our free spend tracker lets you log deposits, and you can download them as a CSV.

Practical record keeping

Even where winnings are tax-free, records help you see the real picture. Keep a simple log of deposits, withdrawals, wins and losses for each site and each tax year. In the United States, the IRS expects a diary or similar record, including the date, type of gambling, location, and amounts won and lost. Account statements from licensed operators are a useful backup, and most let you download your history.

Winnings abroad

If you win while travelling, the tax rules of the country where you won and of your home country may both matter. Non-residents who win at US casinos can face withholding that differs from the rate for residents. Tax treaties may help, but the details are complicated, so take professional advice for large wins.

Where to check the rules

Always confirm current rules with the official tax authority in your country, because thresholds and rates change. This article is general information and does not replace advice from a qualified adviser.

Quick answers

• Are lottery wins taxed? Not in the UK, Ireland, Canada or Australia for players, but yes in the United States.
• Do operators report winnings? In the US, yes, above set thresholds. Elsewhere, players generally have no reporting duty because winnings are not taxed.
• Can I deduct losses? Only in the US, where for tax years beginning after 31 December 2025 the deduction is limited to 90% of losses and cannot exceed winnings, and recreational gamblers generally must itemise.

The bottom line

Recreational gambling winnings are tax-free for players in the UK, Ireland, Canada and Australia, but all winnings are taxable in the United States, where you must report them and, from tax year 2026, can deduct only 90% of losses and never more than your winnings. Professional gambling is treated differently in different countries, so if you gamble for a living, take advice from a qualified tax adviser.

Sources

• HM Revenue and Customs: Tax on gambling winnings (gov.uk)
• HM Revenue and Customs: Business Income Manual, professional gamblers (gov.uk)
• Internal Revenue Service: Topic 419, Gambling income and losses (irs.gov)
• Internal Revenue Service: Form W-2G instructions (irs.gov)
• Canada Revenue Agency: Lottery and gambling winnings (canada.ca)
• Australian Taxation Office: Gambling winnings and losses (ato.gov.au)
• Revenue Commissioners: Betting and gaming taxes (revenue.ie)

18+ only (21 in most US states, 19 in most Canadian provinces for casino and betting). Gambling can be addictive. Free, confidential help is available: Great Britain: England and Scotland 0808 8020 133, Wales 0808 2819 265 (free, 24 hours), and GAMSTOP (gamstop.co.uk); US: National Problem Gambling Helpline 1-800-MY-RESET (the older 1-800-522-4700 also works); Australia: Gambling Help Online 1800 858 858 and BetStop (betstop.gov.au); Ontario, Canada: ConnexOntario 1-866-531-2600; Ireland: speak to your GP or the HSE. Never gamble money you need for living costs.