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  • Post last modified:Updated: 04/12/2022

Are you a Canadian online gambler? If so, it’s important that you understand your tax obligations. This article will provide you with all the information you need to know about online gambling taxes in Canada. We’ll answer common questions, such as how to report gambling winnings and losses, and whether or not you have to pay taxes on lottery winnings. Plus, we’ll review some of the best online casinos and lotto services available to Canadians. So whether you’re just starting out in online gambling or you’re looking for a new site to play at, this article has everything you need!

Like most things in life, when it comes to gambling taxes there is both good and bad news. The bad news is that online gambling is considered a taxable activity in Canada, so you’re required to report any winnings or losses on your tax return. The good news, however, is that the Canadian government has made it relatively easy to do so.

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Do Canadian Players Have to Pay Tax on Gambling Winnings?

gambling taxThe answer to this question depends on a few factors, such as where you reside and the type of gambling you participate in. Generally speaking, Canadian players are required to pay tax on online gambling winnings. However, there are some exceptions. For example, if you only gamble occasionally and your total losses for the year exceed your winnings, then you may not have to pay any taxes. There are also certain types of gambling (like betting on horses or playing the slots) that are exempt from taxation.

How Much a Player Can Win Before Taxes

There are no hard and fast rules when it comes to online gambling taxes in Canada. The amount you have to pay will ultimately depend on where you live, how much money was won or lost during the year, as well as other personal circumstances that may affect your tax return. You should always consult with a qualified accountant before filing any returns online or at an office location near you!

For example, some provinces like Ontario allow residents who gamble online but don’t live there full time (such as snowbirds) to deduct losses from their winnings if they’re filed within six months of leaving the province permanently. In this instance, only those individuals would need to pay taxes since no one else is required by law for them to until then. But, if you’re a Quebec resident who gambles online and wins more than $5000 in a year, you are obligated to declare those winnings on your tax return.

So as you can see, the rules surrounding gambling taxes in Canada are complex and vary from province to province. That’s why it’s always best to speak with an accountant or other qualified professional before filing your returns.

How Online Casinos Deal With Income Tax

When it comes to online casinos and income tax, things are a little simpler. Most online casinos will automatically report any winnings you make over a certain amount (usually $600) to the Canadian government. This means that you don’t have to worry about filing anything yourself – the casino will do it for you! All you need to do is provide them with your social insurance number (SIN) when registering, and they’ll take care of the rest.

There may be some instances where an online casino doesn’t report your winnings; in this case, it’s important that you declare any gambling income on your own tax return. You should keep records of all your bets and wins/losses so that you can accurately report them.

Differences in Taxation Between Online and Offline Gambling

There are some key differences between online and offline gambling when it comes to tax laws. For starters, online gambling is considered a “deemed income” in Canada, whereas offline gambling is not. This means that any money you win from online gambling is subject to full taxation, regardless of whether or not you report it. Offline gambling, on the other hand, is only taxed if you actually make a profit from it – which most people don’t.

Another difference is that online casinos are required to report your winnings directly to the Canadian government, while offline casinos are not. If an online casino doesn’t report your winnings (or if they accidentally report them incorrectly), then it’s up to you to declare those earnings.

Difference in Taxation Between Regions or Provinces

Some online gambling sites are based outside of Canada, which means that they aren’t subject to the same tax laws. This can be tricky if you win money from an online casino located in another country; it’s entirely possible for your winnings not to get reported at all! You’ll need to take extra care when filing your taxes if this happens so that there are no issues down the line with CRA (Canada Revenue Agency).

Brand and Reputation

All online casinos in Canada have to be licensed by the Canadian Gaming Commission. This ensures that they follow all rules and regulations set out by provincial governments, including those relating to taxes.

The online casino must disclose its tax information upfront before you can make any deposits or place bets with them; if an online gambling site refuses to do so, then it’s likely not legitimate! You should always check for signs of legitimacy such as a license number from gaming authorities (like eCOGRA), contact details like phone numbers or emails on their website, and other things that show they’re operating legally within your jurisdiction before playing at a new online gambling site.

If there are no obvious red flags when researching an online gambling site but still doubts linger, it’s always best to contact the online casino’s customer service and ask them directly about their tax policies.

When it comes to offline gambling, there are no such licensing requirements in place; as a result, you need to be extra vigilant when choosing an offline casino. Stick to well-known brands with good reputations to ensure that you’re not scammed!

What Can Happen if You Gamble in Another Country?

gambling tax CanadaIf you gamble online or offline in another country, then the laws for that particular country will apply. This means that your winnings could be taxed differently than they would if you gambled at home! For example, online gambling is not legal everywhere in Canada so some online casinos might try to take advantage of this by offering tempting bonuses which aren’t subject to Canadian taxes – but these are usually scams and should always be avoided. Offline gambling (especially abroad) can also lead to problems with other countries’ governments; it’s important that you familiarize yourself with local laws before going out on an international trip just in case something goes wrong during your travels.


Online gambling is a popular pastime in Canada, but there are many things to consider before playing online or offline. For example, online casinos aren’t regulated by federal laws so they could potentially be scams and might not follow the same tax rules as other online gambling sites – such as those located outside of Canada! Offline casinos may seem like less of an issue when compared with online ones; however, this isn’t always true because some offline gambling establishments don’t report your winnings accurately which means that you’ll need to declare them yourself at some point down the road (and possibly pay additional taxes depending on where you live).

Gambling Tax FAQ

Yes, online gambling is taxable in Canada. If you win more than $300 on lottery or online gambling sites that are located outside the country, then these earnings will be subject to taxes when filing your annual return with CRA (Canada Revenue Agency).

It depends on where they're based and what laws apply there - for example, if an online casino has a license from Malta Gaming Authority then it may not need to report your winnings because Malta does not require this information as part of its licensing requirements; however, there is always some risk involved when playing at offshore online gambling establishments.