Is Sports Betting Taxable in Canada? (Gambling Tax Guide for 2025)

The laws for gambling taxes in Canada can be complex, but if you are a casual gambler, you have nothing to worry about. Casual sports betting, poker, lottery, or casino winnings in Canada do not need to be declared on your end of year tax returns.

If you are a professional gambler who relies on winnings as a main source of income, you will need to report your winnings. This article breaks down all the rules and regulations surrounding gambling tax laws, so if you have more questions make sure to keep reading. 

Gambling or sports betting winnings are not taxable for the majority of Canadians. Sports betting, casino, poker, and lottery winnings are viewed as “windfall” by the Income Tax Act in Canada, meaning they are entirely luck based. It is recommended that you report your winnings on your personal income tax slips, but this is just for accountability purposes.

Gambling winnings become taxable if you are recognized as a professional gambler. You are a professional if you are expecting a consistent profit as a regular source of income that you can live off. All tax rules apply the same for both online and in-person gambling.

Here is a table comparing the tax status for each type of gambling.

Types of Gambling Winnings	Casual Gamblers	Professional Gamblers
Sports Betting	Not taxed in Canada	Provincial tax rates apply
Casino	Not taxed in Canada	Tax rates only apply to games that require skill
Poker	Not taxed in Canada	Provincial tax rates apply
Lottery	Not taxed in Canada	Not taxed in Canada

Each province has its own specific gambling laws and gaming control board in charge of regulating gambling. All provinces are also subject to federal legislation including the “Criminal Law Amendment Act, 1968-69” and the “Safe and Regulated Sports Betting Act.” These two acts in addition to the Income Tax Act determine who needs to pay tax on gambling winnings in Canada.

All Canadians are required to pay a Federal tax ranging from 14.5% for under $57,375 to 33% for over $253,414 yearly incomes. Here is a breakdown of the taxes on gambling, regulators, and legislation for each province.

Newfoundland and Labrador

Newfoundland is regulated by the Atlantic Lottery Corporation. Income tax rates range from 8.7% for under $44,192 to 21.8% for over $1,128,858 yearly incomes. The most important piece of legislation that you need to be aware of for gambling tax law is the Lottery Licensing Regulation 1/02.

Prince Edward Island

P.E.I. is regulated by the Atlantic Lottery Corporation. Income tax rates range from 9.5% for under $32,328 to 19% for over $140,000 yearly incomes. The most important piece of legislation that you need to be aware of for gambling tax law is the Lotteries Commission Act.

Nova Scotia

Nova Scotia is regulated by the Atlantic Lottery Corporation. Income tax rates range from 8.79% for under $30,507 to 21% for over $154,650 yearly incomes. The most important piece of legislation that you need to be aware of for gambling tax law is the Gaming Control Act.

New Brunswick

New Brunswick is regulated by the Atlantic Lottery Corporation. Income tax rates range from 9.4% for under $51,306 to 19.5% for over $190,060 yearly incomes. The most important piece of legislation that you need to be aware of for gambling tax law is the Gaming Control Act.

Quebec

Quebec is regulated by Loto-Quebec. Income tax rates range from 14% for under $51,780 to 25.75% for over $126,000 yearly incomes. The most important pieces of legislation that you need to be aware of for gambling tax law is the Act Respecting Lotteries and Amusement Machines and the Act Respecting the Société des Loteries du Québec.

Ontario

Ontario sportsbooks and casinos are regulated by the Alcohol and Gaming Corporation of Ontario, through iGaming Ontario. Income tax rates range from 5.05% for under $52,886 to 13.16% for over $220,000 yearly incomes. The most important pieces of legislation that you need to be aware of for gambling tax law is the Gaming Control Act, the Ontario Lottery and Gaming Corporation Act, the Alcohol and the Gaming Commission of Ontario Act.

Manitoba

Manitoba is regulated by Manitoba Liquor & Lotteries. Income tax rates range from 10.8% for under $47,564 to 17.4% for over $101,200 yearly incomes. The most important pieces of legislation that you need to be aware of for gambling tax law is the Liquor, Gaming and Cannabis Control Act and Manitoba Liquor and the Lotteries Corporation Act.

Saskatchewan

Saskatchewan is regulated by Lotteries & Gaming Saskatchewan. Income tax rates range from 10.5% for under $52,463 to 14.5% for over $152,750 yearly incomes. The most important pieces of legislation that you need to be aware of for gambling tax law is the Alcohol and Gaming Regulation Act and the Saskatchewan Gaming Corporation Casino Regulation.

Alberta

Alberta is regulated by Alberta Gaming, Liquor, and Cannabis. Income tax rates range from 10% for under $151,234 to 15% for over $362,961 yearly incomes. The most important pieces of legislation that you need to be aware of for gambling tax law is the Gaming, Liquor & Cannabis Act and the Gaming, Liquor & Cannabis Regulation.

British Columbia

British Columbia is regulated by the British Columbia Lottery Corporation. Income tax rates range from 5.06% for under $49,279 to 20.5% for over $259,829 yearly incomes. The most important piece of legislation that you need to be aware of for gambling tax law is the Gaming Control Act and the Gaming Control Regulation.

Yukon

Yukon is regulated by the Yukon Liquor Corporation. Income tax rates range from 6.4% for under $57,375 to 15% over $500,000 yearly incomes. The most important piece of legislation that you need to be aware of for gambling tax law is the Lottery Licensing Act and Regulations.

Northwest Territories

Northwest Territories is regulated by the Department of Municipal & Community Affairs. Income tax rates range from 5.9% over $51,964 – 14.05% over $168,967. The most important piece of legislation that you need to be aware of for gambling tax law is the Lotteries Act.

Nunavut

Nunavut is regulated by the Nunavut Liquor Commission. Income tax rates range from 4% for under $54,707 to 11.5% for over $177,881 yearly incomes. The most important piece of legislation that you need to be aware of for gambling tax law is the Lotteries Act in Nunavut.

Gambling tax only applies to professional gamblers. You are considered a professional gambler if gambling is your primary source of income and you treat it like a job. Sports betting professionals have an advanced knowledge of the betting market and know how to consistently profit. If you are a poker player who regularly attends tournaments and makes enough money to not have a second job, you also qualify as a professional.

The important distinction here is that winnings cannot be taxed if they are a stroke of luck. If you are a regular working person who likes to gamble for fun in their free time, you are likely not making a consistent or substantial enough profit for the government to tax you.

Lottery winnings are purely luck based, so even if you are considered a professional gambler, you will not be taxed on this income. Casino winnings are a bit more complex as some games are purely luck based like slots or roulette, but other games like blackjack and poker require some skill.

As a disclaimer we want to stress that if you are a professional gambler or if you think you might qualify, you should seek expert legal advice before filing your taxes. If you are a professional sports bettor, casino game player, or poker player, you need to declare your winnings on your T3, T5, and T5013 tax forms which are sent to the Canada Revenue Agency.

You should always have an updated file keeping track of your wins and losses, as well as any business-related expenses that can be deducted against your taxes. Most sports betting sites or online casinos have a history of all your past wagers, but you can keep screenshots on your personal device to be safe. You should also keep receipts for any deposits or withdrawals from in person casinos, or any records of money being transferred to you for large tournament winnings.

If you are a casual gambler, you should still declare your winnings on your tax forms for accountability purposes, but this income won’t be taxed as long as the Canada Revenue Agency doesn’t recognize you as a professional. Any winnings you have from the USA should be declared on your tax forms as well, but you will not be taxed by the Canadian Government.

The USA will tax you according to state laws, and this tax will be taken off your winnings when you withdraw from a casino. A tax of 30% for any winning above $1200 will automatically be deducted. You can, however, declare these winnings and get some or all of that tax back on your end of year tax returns in Canada.

Gambling losses are only deductible if you are a professional gambler. Any travel or business-related expenses can be deducted as well, but it is essential to keep detailed and accurate records or all these transactions. If you think you qualify as a professional, contact a tax lawyer to help guide you through the process of filing your taxes.