Short answer: no — casino, sports-betting and lottery winnings are not taxable for recreational players in Canada. You keep 100% of what you win and don't report it as income. There are two important nuances — income you earn on the winnings, and the rare case of the professional gambler — which this guide explains, with sources. It is general information, not tax advice.
Why Winnings Are Tax-Free: the Windfall Doctrine
The Canada Revenue Agency treats winnings from gambling done for entertainment as a windfall — outside both income and capital gains. Whether you win C$50 or C$50,000 on a slot, a hockey bet or a lottery ticket, it isn't taxed and isn't reported. The CRA's own guidance (Income Tax Folio S3-F9-C1, and the Line 13000 material on "amounts that are not taxed") confirms lottery and gambling winnings, gifts and inheritances are not taxable to the recipient.
The Exception Everyone Misses: Income Earned on Winnings
Here's the part that catches people. While the winnings are tax-free, any income you earn on them is taxable. In the CRA's words, "income earned on any of the above amounts (such as interest you earn when you invest lottery winnings) is taxable." So if you park a C$50,000 win in a savings account or investment, the interest, dividends or capital gains it generates are ordinary taxable income — even though the original win was not.
Crypto Winnings Are a Separate Tax Event
If you play at a crypto casino and win Bitcoin or another coin, the winnings themselves are still a tax-free windfall. But the moment you convert that crypto to Canadian dollars — or trade it for another coin — you've made a disposition, and the change in value from when you received it to when you sold can be a capital gain or loss. Track the adjusted cost base of any crypto you win, and keep records of every conversion. The win is tax-free; the crypto disposition is not the same thing.
When Winnings Become Taxable: the Professional Gambler
If you gamble as a business — systematically, with skill, an expectation of profit, and as a genuine source of livelihood — the CRA can treat your winnings as business income and tax them (in which case related losses and expenses may become deductible). There is no single test; the courts apply the commerciality analysis from Stewart v Canada, 2002 SCC 46, looking at the whole picture. Skill alone doesn't make you a professional — it's the businesslike conduct that matters.
Indicators the CRA looks at
- Sustained, high-volume winning over multiple years;
- Reliance on gambling as your main income;
- A systematic, professional approach — tracking software, coaching, multi-tabling, bankroll management;
- Full-time dedication rather than recreation.
What the Courts Have Said (Poker Cases)
Most Canadian case law on this involves professional poker players, and the outcomes cut both ways:
- Duhamel v The King (2022 TCC 66) — WSOP winnings ruled not taxable.
- Fournier-Giguère (2022 TCC 132), Bérubé (2023 TCC 12), D'Auteuil (2023 TCC 3) — winnings ruled taxable as business income.
- Fournier-Giguère v Canada (2025 FCA 112) — the Federal Court of Appeal confirmed the taxability framework, and the Supreme Court of Canada refused leave to appeal in 2026, leaving it as the governing approach.
The takeaway: the bar for "professional" is high and fact-specific, but it is real, and a serious grinder should get advice.
Record-Keeping and Reporting
Recreational players have nothing to report. If there's any chance the CRA could view your play as a business, keep a contemporaneous log — dates, sites, buy-ins, wins and losses — and note that a gambling business earning over roughly C$30,000 a year can trigger GST/HST considerations. An offshore casino will never issue a Canadian tax slip, which removes the paperwork but not any underlying obligation.
Sources: CRA Income Tax Folio S3-F9-C1 and Line 13000 guidance; Stewart v Canada, 2002 SCC 46; Duhamel 2022 TCC 66; Fournier-Giguère 2025 FCA 112 (leave to appeal refused by the SCC, 2026). General information, not tax advice — consult a Canadian accountant for your situation.
Are casino winnings taxable in Canada?
No. Recreational gambling winnings are treated as a tax-free windfall in Canada — you keep everything and don't report it. Only professional gamblers who play as a business may owe tax.
Do professional gamblers pay tax in Canada?
Possibly. If you gamble systematically as a business with an expectation of profit and as your livelihood, the CRA can treat winnings as taxable business income (with losses potentially deductible). Courts apply the Stewart v Canada test; the bar is high and fact-specific.
Are crypto casino winnings taxed in Canada?
The winnings themselves are a tax-free windfall. However, converting won crypto to Canadian dollars is a separate taxable disposition that can create a capital gain or loss — track your adjusted cost base.
Is income earned on gambling winnings taxable?
Yes. While the winnings are tax-free, any income they generate — such as interest or investment returns after you deposit or invest them — is ordinary taxable income, per CRA guidance.
Do I have to report gambling winnings on my tax return?
Recreational players do not report gambling winnings. Only if your gambling amounts to a business would the winnings be reported as income.
Are gambling losses tax-deductible in Canada?
Not for recreational players, since the winnings aren't taxed either. Only professional gamblers whose winnings are taxed as business income may deduct related losses and expenses.
About Riley Beaumont
Riley Beaumont covers iGaming Ontario, the AGCO and Canadian gambling legislation from Toronto. Riley reads the regulators' registers and reports, tracks the Alberta iGaming Corporation launch, and writes about what the records show rather than what operators claim.
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