Sports Betting & Gambling Wins in Canada: Are the Taxes Different?

Lisa Cheban
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Lisa Cheban


Lisa is an esteemed expert in the field of iGaming. With her extensive experience in writing iGaming content, she possesses the knowledge and skills to provide you with the most informative and engaging insights into the world of gambling.


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Simon Young
Reviewed byReviewed by:Simon Young


Simon Young


Simon Young, a former national news editor and journalist, once held the prestigious position of Lead Editor at PokerStars before focusing his editorial talents on Betsquare. His illustrious career journey seamlessly bridges the realms of journalism and online gambling, crafting a unique narrative of expertise and innovation.


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Updated on:

Feb 19, 2024, 2:06 pm


Canadians have loads of gambling opportunities, including famous land-based casinos like Casino Niagara (Ontario Proximity to Niagara Falls) and a range of the best online casinos players can find due to our reviews. Since all these activities are connected with real money payments, except for the free demo mode, we want to talk about taxes, and this time, we’ll compare gambling and sports betting taxes to find out whether the rate is different.

high payout casino money bag

Gambling & Sports Betting: Legal Position

All the laws locals access today are based on The Criminal Code of Canada, and Canadian gambling laws work the same. For decades, many of these forms have been prohibited, though people were still looking for this entertainment. Today, the government considers players’ thirst for this entertainment and adjusts the laws accordingly. This way, Canadians are allowed to place real money bets, and it’s true for both online casinos and sports betting venues (as soon as the operator is allowed by a local province and is licensed accordingly).

Taxes & Gambling Activities in Canada

Canadian laws require people to report their wins and pay taxes according to determined rates. Since both sports betting and gambling are the ways Canadians can earn real money, both of these ways are similar in terms of taxation rates. Actually, the main aspect explaining whether wins in Canada are taxable is based on whether players get net incomes. This means that you can deduct losses and need to pay taxes only for the amount which is your interest. This theory is proved by the Paragraph 40(2)(F) of the Income Tax Act. Users pay 15% to 33% and fill in T5 slip, T3 slip, and T5013.

Real Money Bookies & Online Casinos

On Canadian gambling sites, you can both bet on sports and play slots or table games, which is very convenient since such entertainment is located on the same site. Yes, these two branches of gambling are different and that is why they attract so many new players. It turns out that sports fans can reinforce their knowledge with a successful bet, and board game enthusiasts can hone their skills.

Canadian Sports Betting: What You Should Know

In online casinos in Canada, you can often find a section with sports betting where gamblers can place bets on all popular local and global events, including the ones from our sports calendar 2023 & 2024. You can look at all upcoming sports events in our special calendar, so you have time to study the teams and prepare for spectacular viewing. Below, we will add the most popular sporting events in Canada which are chosen by players as CA favs.

Sports type Why popular
Ice Hockey Hockey is considered the most popular sport in Canada as the sport is recognized as an official national sport.
Lacrosse This discipline is also considered the oldest in Canada and is regulated by the Canadian Lacrosse Association formed in 1925.
Soccer This sport is popular because you can follow teams from all over the world and each league has its own flavor. Global football championships are also often held, which are followed by the whole world.
Baseball This sport is very popular in both Canada and the USA, and therefore, fans can regularly watch hot games.

Casino Games in Canada: Local Favourites

In addition to sports betting, Canada has many fans of online gambling since this entertainment includes a lot of software from reliable providers. Here, we want to add more popular games that are in great demand among Canadian gamblers.

Game type Explanation & Examples How to win
Slot machines In the casino, you can play both classic fruit slots and 3D ones with bonus modifications. Today, popular variations are Megaways slots with cascading mechanics, for example, Sweet Bonanza. In order to get a win, you need to collect at least 3 identical symbols on active lines. There are also slots where payment can be made anywhere.
Table games In the table games section, you can play RNG roulette, baccarat, blackjack, poker, and other games of skills, also known as games of strategies. To win, you need to collect a combination of cards according to the rules or guess the number on the roulette wheel.
Lotteries Lotteries like bingo are an excellent type of mini-games where gamblers can test their luck. There is also such entertainment with bonuses or live dealers. In such games, gamblers must rely only on their luck, since the numbers drawn must match your ticket.
Live games Live games are online software with live dealers where gamblers can play roulette, TV shows, baccarat, or blackjack live and chat online. The rules are the same as in RNG board and card games.

Sports Betting vs Casino Games in Canada

Gamblers can quickly switch between the sports and casino sections as many Canadian sites boast a wide selection of games. Of course, these types of entertainment are very popular and many come to this question: what are the main differences between these types of entertainment? Let’s say right away that there are differences, since betting is associated with sports, and casinos are associated with table games or slots. But let’s try to compare these two types in detail.

Sports betting Casinos
A wide selection of bet sizes and additional options that can increase the odds, but at the same time reduce the chances. The range of bets in slots is always limited and there is a limit to the potential. But the slots have bonuses that increase your chances of winning.
By placing a bet on sports, players can watch hot live broadcasts and at the same time relax. The only thing is that such events take place on a specified date and at a specific time, and therefore, you need to adapt to this. Unlike betting, online slots must be played in person by pressing keys, but gamblers can always pause and continue the session another time.
There are not always many bonuses for the sports section. As a rule, there are few of them, but they have a small wager.


For the casino section, there is a wide selection of bonuses that are updated regularly, which is worth the VIP club. But there is a minus to this since the wager for casinos is higher than for sports.
You can bet on sports at any time, but you have to wait for the results. Slots can be launched at any time, as well as winnings.
If you study the statistics of sports teams, you can predict a more accurate result. Of course, we shouldn’t forget about the underdogs. No one can influence the result in slots since it is random due to the house edge and everything depends on your luck.

Dealing with Real Money & Taxes in Canada

To place real money bets and get wins, Canadians should deposit first. This can be done via a range of payment options supported in the country, including local variations like Interac, Neosurf, and others. When you use official methods like bank cards or wire transfers, the funds are displayed to this financial institution and can be tracked by the government. In this case, you should check whether the amount you win is taxable and report it. However, when we are talking about cryptocurrency, taxes for sports and casino wins can be avoided since these amounts aren’t visible to anyone and Canadians can keep them private.

Sports Vs Casino Taxes: Will You Pay More?

So, is the way you get wins important when you calculate taxes for your wins? In fact, there is no difference and you will pay the same taxes for sports betting and casino wins. In most cases, these wins can be received within the same gambling site since bookmaker and casino services can be provided within the same operator. To track new games and events, you can check our casino calendar 2023 & 2024. It’s really convenient and provides Canadians with more opportunities to enjoy legal gameplay and withdraw real funds.

AI & Tax Rates for Canadians

If you aren’t sure what tax rate should be paid in your particular case, pay attention to Artificial Intelligence which can be used for loads of things, including gambling tax rate analysis. This way, Canadians can analyse whether the rates for a certain area are correct and sports or casino wins can be withdrawn with no problems with local laws. Feel free to use this method to get more information about gambling winning tax rates in Canada.


Canadians are welcome to join fair gambling sites with local licences and get winnings on such platforms. This allows gamblers to pick operators with the best offers and test games with the highest RTP. Moreover, when you’ve played the selected games and received wins, the next step is dealing with taxes of the amounts you withdraw. Canadian laws vary from province to province and the amount you withdraw also matters, but one thing is for sure, when you get wins from sports betting, their taxes are the same as for regular casino games. This makes the industry really affordable. Of course, you shouldn’t forget about things like checking T&Cs and picking charge-free payment options to minimize spendings.


Do Canadians pay taxes for online gambling wins?

The Paragraph 40(2)(F) states that players in Canada pay taxes for their winnings only from the net interest, and the rate varies from 15% to 33%, while the majority of the country’s gambling income is based on the companies’ income instead.

Are Canadian taxes for sports betting and casino wins different?

No, these two rates will be the same since you get wins in the same way, though the forms of this gambling entertainment are different.

Can you avoid taxes when playing for cryptocurrency?

Yes, some Canadians opt for this method since cryptocurrency incomes aren’t reported and can be kept private. Players can use Bitcoin, Litecoin, and other cryptos.

Are casinos and bookies legal in Canada?

The gambling industry in Canada is legal when casinos have corresponding licences, especially when a certain province requires local licences, such as AGCO for Ontario. Here at BetSquare, we have a rating of such casinos.

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Current Version
Dec 7, 2022
Written By
Lisa Cheban
Edited By
Simon Young