CNTower
2022-11-23 22:51:30
https://www.casino.ca/guides/taxation/
How is Gambling Taxed?
No gambling related activity can be taxed because it is not a constant source of income and did not come from employment, property or other viable source. Gambling is also not considered a business and most Canadians do not make a living on their winnings. In the laws eyes, taxing this would not be fair or just.
Are Gambling Winnings Taxable in Canada?
No - Canadians do not have to pay taxes on gambling winnings from horse racing, sports betting, lotteries, online casinos and any other games of chance. However, if you earn interest on your winnings, you must legally declare that on a T5 form. This interest is taxable. Should you be caught not paying taxes on this, you could be fined.
Do Professional Gamblers Have To Pay Income Tax?
If you are a full time gambler, online or offline, and make a living from betting, you are required to file taxes. Professional poker players, blackjack players or any other professional gambler are viewed as operating their own freelance business. This is taxable in Canada.
There is a catch to this. So far, the Canada Revenue Agency is slow to assess and audit people whose source of income comes from gambling. The reason being is that they are said to operate a business and those business profits are taxable. However, this same business can accumulate significant losses which reduce income and income from other businesses. If the CRA started to forcefully tax these pro players, there could be a very damaging domino effect throughout the country. We're not saying to avoid paying taxes, as you should, but this information is there to help you better understand the situation.
Do You Pay Tax on Lottery Winnings in Canada?
No - The Canada Revenue Agency states you don't have to pay tax on lottery winnings from OLG or other lottos, or report them. That said, if you earn interest on them, that amount can be subject to taxation.
Do You Pay Tax on Gambling Winnings in the USA?
Unfortunately, US Citizens have to pay almost half of any gambling winnings to the tax man. If you head over to the land of the red, white and blue to gamble, you will have to pay taxes on anything over $1200 USD. If you think you can just not declare it, think again. When you walk up to that booth to happily cash out, 30% is automatically deducted. You don't even have a say so. That said if you are a Canadian Citizen legally working in the U.S.A., you can deduct any gambling losses which occurred in the states and receive a tax refund based upon that.
Canadian Gambling Tax - A Summary
To Put Things Frankly
Canadian casino players and gamblers don't pay tax on their winnings
However, if you are a full time/professional gambler, you are required to file taxes
If you gamble and win whilst in the USA, you need to declare it
Lottery winnings also aren't taxable.