Casino Taxation in Australia: Basic Rules & Aspects

Gambling is not only about fun games but also about real money wins when the luck is on gamblers’ side, so Aussies getting rewards at top online casinos need to take care of some basic factors, including safety issues, gambling laws in Australia, and tax rates for casino wins. Our BetSquare experts have already analysed this question, so we are here to explain how to calculate gambling taxes in Australia, what exceptions take place, and what other tips can be helpful for Australian online casino players!

Gambling in Australia: History & Legal Position

In the 18th century, Australia experienced the first forms of gambling, which were card games, sports betting, especially horse racing, and more. The next century was even more beneficial since the first official horse race was established in Sydney in 1810. Then, Aussies experienced the big lottery boom, though it led to certain fraudulent problems, so some forms were prohibited soon. In 1973, Australians were lucky to visit the first official and legal land-based casino. It was Wrest Point Hotel Casino in Hobart, Tasmania. 

Soon, the government accepted more brick-and-mortar operators since it’s the best way to control the activity, provide proper safety measures, and receive taxes paid by operators to boost the local economy. In the 1950s, the country was friendly to pokies which used to be land-based machines. And now, this entertainment is all available online, though the Interactive Gambling Act (IGA) has certain restrictions in this regard, so Aussies can opt for offshore-licenced sites instead.

Casino Taxation for Aussies: Types & Differences

Here in Australia, players can access different forms of gambling, including online and brick-and-mortar variations, which makes Australian tax laws different depending on this type. In general, they are all controlled by ATO (Australian Taxation Office), so you can always visit its official website for more details. 

Basically, gamblers pay betting tax once the WA taxable betting revenue exceeds the threshold of $150,000 per assessment year. In this case, the tax is 15% the amount which exceeds this limit. For example, if the threshold is $160,000, you’ll pay 15% of the $10,000 amount ($160,000 minus $150,000).

As for the most popular gambling types in Australia which make the tax rate vary, these are the ones Aussies can access:

  • Online gambling
  • Gaming machines (online pokies)
  • Lotteries like Keno
  • Betting and sports betting
  • Casino taxes (charged on the operator’s side)

Besides, it’s worth mentioning that in most cases, players aren’t responsible for paying gambling taxes since it’s the duty of operators, and the rate will be different depending on the form of the services this operator provides and the area where they are provided.

Taxation Forms in Australia

As we’ve said, the tax rate may be different depending on the activity and area. This way, the government can benefit from different products provided to operators, so the payments can come from the turnover tax, tax on players’ losses, net profit taxes, and licensing fees. These categories look like this:

  • Turnover tax
    Bookmakers (racing), Sports betting, Totalisator wagering on racing, Lottery subscriptions, Draw card machines, Keno
  • Net profits tax
    Poker machines, Off-course totalisator investment
  • Tax on player loss
    Totalisator wagering on racing, Sports betting, Poker machines in hotels, clubs, and casinos, Casinos, TAB sports betting, Keno
  • Licence fees
    Casinos, Poker machines, Lotteries, Racing, Bookmakers, Sports betting, Minor gambling (bingo, raffles)

Australian Gambling Taxation: Comparative Table

Actually, the issue of taxes for real money casino wins in Australia is very complex since the laws and all these rules vary depending on many factors, including the area, game type, and the amount players spend. In this block, our BetSquare team will cover some basic aspects to let you know when you should report your wins and what percentage should be paid.

Location EGMs in hotels EGMs in clubs EGMs in casinos Keno Table games in casinos (+ keno in some casinos)
NSW 0–50% of quarterly player loss, depending on quarterly player loss 0–28.05% of quarterly player loss, depending on quarterly player loss (the rate peaks at 28.05% for $250,000–$450,000, then falls to 18.05% before rising to a maximum of 26.55% above $5 million) 16.41–38.91% of gross revenue, depending on gross revenue, plus 2% Responsible Gambling Levy on gross gaming revenue 8.91%–14.91% of player loss, depending on player loss 16.41–38.91% of gross revenue, depending on gross revenue
Victoria 8.33–62.53% of monthly average player loss (per machine), depending on by monthly average player loss, times by the average number of machines 0–54.20% of monthly average player loss (per machine), depending on monthly average player loss, times by the average number of machines 31.57–51.57% of gross gaming revenue, depending on gross revenue, plus a 1% Community Benefit Levy 24.24% of player loss 21.25–41.25% of gross revenue, depending on gross revenue, plus 1% Community Benefit Levy
Queensland 35% of monthly taxable metered win (amount bet minus payout), plus Health Services Levy of 0–20% of monthly taxable metered win, depending on monthly metered win 0–35.00% of monthly taxable metered win, depending on monthly metered win 30% of monthly gross revenue (Gold Coast and Brisbane casinos), 20% of gross revenue (Townsville and Cairns casinos) 29.40% of monthly gross revenue, excluding casino commissions (Jupiters Casino), 20% of monthly gross revenue (Gold Coast and Brisbane casinos), 10% of gross revenue (Townsville and Cairns casinos) 20% of monthly gross revenue (Gold Coast and Brisbane casinos), 10% of gross revenue (Townsville and Cairns casinos)
Western Australia N/A N/A 12.42% flat rate on gross gaming revenue, plus 2% Burswood Park Levy on gross revenue 9.37% of player loss (domestic), 1.75% of player loss (international business) 9.37% (domestic), 12.92% (fully automated table games)
South Australia 0–65% of annual net gambling revenue, depending on annual net gambling revenue Up to 41% of net gambling revenue 41% of net gambling revenue 3.41% of net gambling revenue (table games), 10.91% of net gambling revenue (fully automated table games)
Tasmania 25.88% of gross profit, plus 4% Community Support Levy 25.88% on gross profit 5.88% of gross profit 0.88% of annual gross profit
Northern Territory 12.91–42.91% of monthly gross profits 11% of gross profit (Lasseters Casino), 15% of gross profit (Skycity Darwin Casino), plus a 10% Community Benefit Levy 10% of gross profit, reduced by the GST amount The GST rate only
Australian Capital Territory 25.9% of gross monthly revenue, plus 0.6% Problem Gambling Assistance Fund Levy 10.9% of gross revenue 2.53% of turnover

📌Interesting to know: According to the Taxation ruling IT 2655 Income tax, if a professional gambler and/or their gambling activities are a part of a business, these wins are non-taxable, but this should be proved and the funds should be used for professional needs only.

Australian Gambling: Statistics & Interesting Facts

Besides the amount associated with taxes from your potential wins from online casino games in Australia, it’s also worth considering some statistical details and interesting facts to understand how often Aussies gamble, what amounts they spend, and what the position of AU gambling laws is, so here comes our team to cover this issue:

  • Jonathan Karamalikis, a professional online poker player, has raked in $4.2 million from this activity since 2007 and a further $2.1 million from live tournaments, starting with just $3 in 2007.
  • The Australian gambling market is among the most boosting, which is proved by these numbers: Aussies lose $1,200 per year, which is over $24 billion per year for the entire county.
  • During the fiscal year 2015–2016, gambling revenue accounted for 7.7% of the total state and territory taxation revenue in Australia.
  • When considering all other revenue sources, gambling revenue constituted 2.5% of the overall state revenue in Australia. The state with the lowest rate was Western Australia (0.9%), while the highest rate was recorded in Victoria (3.2%).

New South Wales & Gambling in Australia

The gambling tradition in New South Wales dates back centuries, with several significant milestones in Australia’s gaming history occurring in the state. Sydney’s Hyde Park hosted the country’s inaugural official horse racing event in 1810. Subsequently, in 1881, the Sydney Cup witnessed the inception of Australia’s first official lottery. Moreover, as early as 1956, registered clubs in New South Wales were pioneers in introducing legal poker machines throughout the country. Interestingly, from pokies alone, New South Wales clubs amassed a net profit of $1,945,161,625, while hotels raked in a net profit of $1,169,040,731 during the period from 1st December 2017 to 31st May 2018.

Hunter Region

During the first quarter of 2013, poker machines in the Hunter region witnessed a remarkable turnover of $4.5 billion, indicating a notable surge of $500 million compared to the figures from 2010. On a daily basis, an astounding amount of $12.5 million was spent on these machines, equating to approximately $8,682 per minute.


In 2013, Fairfield held the record for the highest poker machine revenue in the state. From the beginning of that year until August, clubs in Fairfield generated $298 million, while pubs accumulated $93 million. Notably, this total of $391 million surpassed the combined profits from poker machines in the City of Sydney by $123 million.

Central Coast Region

Gosford boasts a substantial number of poker machines, amounting to around 1,928 units distributed among 37 different venues. Wyong, on the other hand, houses approximately 2,608 poker machines, spread across 35 venues. Notably, the Central Coast region, encompassing both Gosford and Wyong, experiences a higher prevalence of problem gambling compared to the average rate in New South Wales.

Gambling Regulatory Authorities & Documents in Australia

Australia is a big country, so it won’t be surprising that its laws may be somewhat different depending on the state and gambling type. That’s why our experts have analysed what regulatory authorities are in charge of different gambling forms in Australia and what documents exist to control this industry.

Australian Capital Territory ACT Gambling and Racing Commission
New South Wales Liquor and Gaming NSW
Western Australia Department of Racing, Gaming and Liquor
Tasmania Tasmanian Gaming Commission
Northern Territory Licensing Commission
Victoria Victorian Commission for Gambling and Liquor Regulation
Queensland Office of Liquor and Gaming Regulation
South Australia Independent Gambling Authority

As for the documents regulating various gambling activities in Australia, they also vary depending on your location. For example, Racing Act 1999 and Interactive Gambling Act 1998 for Australian Capital Territory, Soccer Football Pools Act 2004 and Gaming Control Act 2005 for Northern Territory, Unlawful Gambling Act 1998 and Totalizator Act 1997 for New South Wales, Wagering Act 1998 and Lotteries Act 1997 for Queensland, Gambling Regulation Act 2003 for Victoria, Gaming and Wagering Commission Act 1987 for Western Australia, TT-Line Gaming Act 1993 for Tasmania, and State Lotteries Act 1966 for South Australia.

Real Money Gambling & BetSquare Tips

Our BetSquare team is responsible for your safe online gambling experience in Australia. When it comes to taxes, we explain what forms exist and who should pay these fees. In addition, we cover a range of legal issues to let you understand where you can gamble without facing problems of any kind. Plus, we want to give some tips to let you experience safe gameplay with the best odds out there:

  • Make sure to read your casino’s rules attentively and pay attention to each and every detail when it comes to payments (eg. cashout limits)
  • Choose software from reliable brands and check payout parameters of your game, such as an RTP and volatility
  • Always play responsibly and don’t get depressed when the luck isn’t on your side since gambling is random
  • Avoid blacklisted casinos in Australia and opt for trustworthy AU gambling sites from our rating instead
  • Consider the legal requirements of your current location and check official sources or our site for more details
  • Be open for new gambling tendencies, such as crash games adored by crypto casino players

Australian Government Position Regarding Gambling & Taxes

Compared to other countries, tax laws in Australia are really different and quite friendly to players. In fact, the government believes that players lose quite often (which is, actually, proved by the fact that the house always wins in the long run) and a gambler is not a profession, so when people win (mainly, it’s an average amount), this amount isn’t your income you’ve earned. However, the ATO can track your gambling records from an official casino to analyse your spendings. 

For example, when you declare only $150,000 in your tax return but the commission notices that you’ve spent $500,000 on gambling, you may get the Amended Tax Notice to explain where you’ve got $350,000 more. Of course, it’s not a rule and you can prove that it wasn’t the amount you’ve earned that year, so you won’t face problems in this regard when you declare all your other incomes and have your documents all right.


Here in Australia, some gambling forms are prohibited, while others are fully allowed, such as land-based casinos, state lotteries, and certain online forms. That’s why this industry is taxable and can bring good benefits for the country’s economy. According to ATO (Australian Taxation Office), our team found out that the 15% tax fee is applied to gambling wins once betting revenue exceeds the threshold of $150,000 per assessment year (the tax is paid only for the amount that exceeds $150,000). 

Besides, we learned that the Taxation ruling IT 2655 Income tax law allows professional gamblers to avoid taxes for their wins since it’s their business rather than income and the funds they win are used for further bets. And finally, we’ve got a detailed table displaying that operators pay taxes instead of players, and these amounts depend on the gambling form and the location where such services are provided. Thus, our readers can relax, enjoy existing or new online casinos in Australia, and enjoy safe gambling platforms with no additional worries!


Are gambling winnings taxable in Australia?

In most cases, they aren’t since they are operators who need to pay taxes from their income received due to varied gambling forms (eg. up to 41% of net gambling revenue for EGMs in casinos in South Australia).

Do professional gamblers need to pay taxes from their wins?

The Taxation ruling IT 2655 Income regulation law reveals that wins received by professional gamblers aren’t taxable once the money is used to develop this business.

Do I need to pay taxes for online casino wins?

When an operator has an offshore licence and your win is below $150,000 per year, you don’t report anything and don’t pay taxes for such wins.

How are tax gambling laws different in Australian states?

Taxes for operators in different regions are really different. For example, for EGMs in casinos, operators pay 30% of monthly gross revenue in Queensland, while the tax in Western Australia will be 12.42% flat rate on gross gaming revenue.

Where do I get up-to-date information about gambling taxes?

You can track news on our site, visit the ATO (Australian Taxation Office) official site, or ask your casino’s customer support for help.

Lisa Cheban Author Betsquare

Lisa Cheban


Lisa works as a content writer and specializes in delivering top tier i-gaming content which is why her articles and blog posts are always very engaging and informative. Well spoken, and does her research very well in an industry where transparency, honesty and constant follow up is a rarity.