Here is a table that shows tax status for both recreational and professional gamblers.
You are allowed to deduct any money you lose gambling from your winnings for tax purposes. However, gambling losses in excess of what you win may not be claimed as a tax write-off. You can request a specific amount of withholding tax to be taken out of any jackpot you win. Some players like to do this to avoid a big tax payment in April when they file their income tax returns. The additional withholding may not be necessary if you keep a log book. The law allows you to deduct gambling losses up to the amount of your winnings.
| Form of Gambling | Tax Status for Recreational Gamblers | Tax Status for Professional Gamblers |
| Land-Based Casino | Non-Taxable | Taxable |
| Online Casino | Non-Taxable | Taxable |
| Sports Betting | Non-Taxable | Taxable |
| Bingo | Non-Taxable | Taxable |
| Lottery | Non-Taxable | Non-Taxable |
| Horse Racing | Non-Taxable | Taxable |
| Poker | Non-Taxable | Taxable |
| Pools/Pari-Mutuel | Non-Taxable | Taxable |
| Raffles | Non-Taxable | Non-Taxable |
| Pull-Tabs | Non-Taxable | Non-Taxable |
| Scratch ‘n Win | Non-Taxable | Non-Taxable |
| Fantasy Sports | Non-Taxable | Taxable |
| eSports | Non-Taxable | Taxable |
Recreational Gamblers
The overwhelming majority of Canadian gamblers are classified as recreational gamblers. They might buy lottery tickets, play casino games, or bet on sports among other things. They might win, lose, or break even. It doesn’t matter as long as their gambling isn’t a primary and ongoing source of income.
Oklahoma Income Tax Gambling Winnings
Professional Gamblers
California Tax On Gambling Winnings
Professional gamblers treat gambling like it’s a business. Typically, professionals use gambling as their main source of income. Daniel “Kid Poker” Negreanu is an example of this. He’s made tens of millions of dollars grinding it out at the poker table. However, earning vast amounts of money through gambling doesn’t necessarily make one a professional gambler. Nor does spending a lot of time gambling. But, combine spending a lot of time gambling with consistently eking out a profit and you may fit the bill.
Does California Tax Gambling Winnings
Do You Pay Tax on Gambling Winnings?
Gambling Winnings Tax Form
If you win big at a casino or on the lottery, you’re probably going to ask yourself: “Do I have to pay taxes on these gambling winnings?”. The answer depends on whether you are a professional gambler or a recreational gambler. Canadian recreational gamblers do not pay tax on gambling winnings. It matters not if they win a few thousand dollars at a casino blackjack table or if they win tens of millions of dollars playing the lottery. It’s not subject to taxation.