Are casino winnings taxed in Ontario?
You just hit a nice win at an Ontario online casino. First thought: hell yes. Second thought: wait, do I owe taxes on this?
Short answer: probably not. Here’s how it actually works.
The quick answer
If you’re a regular person gambling for fun, your winnings are not taxable in Ontario — or anywhere else in Canada.
The Canada Revenue Agency (CRA) treats recreational gambling winnings as a “windfall” — basically, a stroke of luck. And luck isn’t income.
This applies to:
- Online casino winnings
- Slots and table games
- Sports betting
- Poker (casual play)
- Lottery and scratch tickets
- Raffles and charity draws
You don’t need to report these winnings on your tax return. You don’t owe the CRA a dime.
What the CRA actually says
The CRA’s official guidance is clear. Under their Amounts that are not reported or taxed page, lottery winnings are explicitly listed as non-taxable — “unless the prize can be considered income from employment, a business or property.”
The same logic applies to casino and sports betting winnings. If you’re playing for entertainment, not as a business, the CRA doesn’t consider it income.
When gambling winnings ARE taxed
There’s one exception: professional gamblers.
If gambling is your job — your primary source of income, something you do systematically with the intention of making profit — then the CRA treats your winnings as business income. And business income is taxable.
The CRA looks at several factors to determine if you’re a professional:
| Factor | What it means |
|---|---|
| Primary income source | Gambling is how you pay your bills |
| Organization | You keep detailed records, track results, manage bankroll like a business |
| Skill or inside knowledge | You have an edge that reduces the element of chance |
| Frequency | You gamble regularly and systematically |
| Intention | You’re playing to profit, not for entertainment |
If you tick most of these boxes, the CRA may classify you as a professional. Your winnings become taxable at your marginal income tax rate — anywhere from 15% to 33% federally, plus Ontario provincial tax.
But here’s the thing: most people don’t come close to this threshold. Winning big once — even winning big multiple times — doesn’t automatically make you a professional. The CRA looks at the overall pattern, not individual wins.
The investment income catch
One thing that is taxable: income earned from your winnings after the fact.
Let’s say you win $50,000 at an Ontario casino and put it in a savings account. The original $50K? Tax-free. The interest it earns sitting in that account? Taxable.
Same goes for dividends from stocks you buy with winnings, or capital gains if you invest and sell at a profit. The CRA is clear on this — any income generated from investing your winnings must be reported.
Can you deduct gambling losses?
If you’re a recreational gambler: no.
You can’t write off your losses against other income. Since your winnings aren’t taxed, your losses aren’t deductible either. It’s a two-way street.
Professional gamblers, on the other hand, can deduct losses and business expenses (travel, tournament fees, etc.) — but only against their gambling income.
What about US casino winnings?
Different rules. If you gamble in the US (Vegas trip, for example), American casinos typically withhold 30% of significant winnings from non-residents.
You can often recover some or all of this by filing a US tax return with the IRS, thanks to the Canada-US tax treaty. But that’s a whole other process involving ITINs and Form 1040-NR.
For winnings at Ontario casinos or any Canadian gambling site? No withholding, no reporting, no hassle.
Bottom line
For the vast majority of Ontario players, casino winnings are completely tax-free. Play at an AGCO-licensed site, cash out your winnings, and keep the whole thing.
Just don’t quit your day job and call yourself a professional poker player — unless you want the CRA to start paying attention.