For most Canadians, the answer is no — casino and gambling winnings are not taxed. The Canada Revenue Agency (CRA) treats recreational gambling winnings as a windfall, not income. But there are important exceptions for professional gamblers, for interest you earn on your winnings, and for money won in the United States. Here is how it works in 2026.
Are gambling winnings taxable in Canada?
If you gamble for fun, your winnings — from online casinos, slots, table games, poker, lotteries or sports betting — are generally tax-free. You do not report them as income, and the CRA does not expect a cut. This applies whether you win C$50 or a major jackpot.
Recreational vs professional gamblers
The key question the CRA asks is whether gambling is a hobby or a business. Winnings become taxable only when gambling rises to the level of a business — for example, a professional poker player who plays systematically, with skill, expectation of profit and as their primary livelihood. The bar is high and these cases are rare, but if you qualify, winnings are business income (and losses may be deductible).
Lotteries, casino games, poker and sports betting
- Lottery wins (Lotto 6/49, Lotto Max, etc.) are tax-free.
- Casino & slots winnings are tax-free for recreational players.
- Poker is tax-free unless you play professionally as a business.
- Sports betting winnings are tax-free for recreational bettors.
What about interest earned on your winnings?
While the winnings themselves are tax-free, any interest or investment income you earn after depositing them (in a savings account or investments) is taxable and must be reported. The windfall is tax-free; the income it generates is not.
Winnings from US casinos
If you win at a casino in the United States, the IRS generally withholds 30% of certain winnings up front and issues a Form 1042-S. Under the Canada–US tax treaty, Canadians can often recover some or all of that withholding by filing a US non-resident return (Form 1040-NR) and offsetting documented gambling losses. Keep your receipts and win/loss statements.
Bottom line
Recreational players in Canada keep 100% of what they win. Just remember the two exceptions: professional gambling income, and tax on the interest your winnings later earn. Before you play, make sure online gambling is right for you — see our guide to whether online gambling is legal in Canada and our Responsible Gambling resources.
This article is general information, not tax advice. For your specific situation, consult a qualified Canadian tax professional.
Frequently asked questions
Do I have to report casino winnings on my Canadian tax return?
No — recreational gambling winnings are not reported as income in Canada.
Are online casino winnings taxed differently than land-based?
No. The recreational-windfall rule applies the same way to online and land-based winnings.
Can I deduct my gambling losses?
Generally no, unless you are a professional gambler whose winnings are taxed as business income.