Are E-Wallet Casino Winnings Taxed in Australia?

The General Rule: Recreational Gambling Winnings Are Not Taxed

The ATO's position is that gambling winnings received by a recreational player are not ordinary income and are therefore not included in assessable income for tax purposes. This applies whether you win at pokies, table games, sports betting or any other form of gambling.

The reasoning is that a recreational gambler does not carry on a business. Winnings are treated as a windfall — an unexpected gain rather than a return on a systematic commercial activity. The same logic applies to losses: a recreational gambler cannot claim gambling losses as a tax deduction.

This general rule applies regardless of the size of the win. Winning a large jackpot at an online pokies site does not, by itself, create a tax liability for a recreational player.

The ATO publishes guidance on this directly. Its page on gambling activities states that if you are not in the business of gambling, your winnings are not assessable income and your losses are not deductible.

Does the Payment Method Change Anything?

No. Whether you receive winnings into an e-wallet such as PayPal, Skrill or Neteller, directly to a bank account, or by any other method, the tax treatment is determined by your status as a gambler — not by how the money moves.

An e-wallet is a payment intermediary. Funds sitting in an e-wallet balance are still your money. Transferring winnings from a gambling site to an e-wallet, and then from the e-wallet to your bank account, does not create a separate taxable event or change the character of the underlying receipt.

Some players assume that using an e-wallet adds a layer of separation that affects tax obligations. It does not. The ATO assesses the nature of the income, not the route it travels.

When Might the ATO Treat Gambling as a Business?

The ATO can treat gambling as a business activity in certain circumstances, which would make winnings assessable income and losses potentially deductible. The distinction between a recreational gambler and a person carrying on a gambling business is a question of fact and degree.

Factors the ATO considers include whether the activity is carried on in a systematic, organised and businesslike manner; whether there is a profit-making intention; whether the activity is repeated and regular; and whether the scale of the activity is consistent with a business rather than a hobby or recreation.

No single factor is decisive. A person who bets frequently, keeps detailed records, uses a system or strategy, and derives a significant portion of their income from gambling is more likely to be assessed as carrying on a business than someone who plays pokies occasionally for entertainment.

If gambling is treated as a business, winnings are included in assessable income and must be declared in a tax return. Losses may be deductible against that income, subject to the normal rules. The ATO's guidance notes that professional gamblers — those who make their living from gambling — fall into this category.

This is a complex area. The boundary between a serious recreational gambler and a professional gambler is not always clear, and the ATO's view can differ from a taxpayer's own assessment. If there is any doubt about your situation, consulting a registered tax agent is the appropriate step.

Do You Pay Tax on Pokies Winnings in Australia?

For the vast majority of Australians who play pokies — whether at a physical venue or online — winnings are not subject to income tax. The ATO does not require recreational players to declare pokies winnings in their tax return.

This is consistent with the general rule described above. Playing pokies, even regularly, does not automatically make a person a professional gambler in the ATO's view. The question is always whether the activity amounts to carrying on a business.

It is worth noting that the operators of pokies machines — licensed venues and, where applicable, licensed online operators — have their own tax obligations under state and territory gaming taxes. Those obligations belong to the operator, not the player.

Should You Keep Records of E-Wallet Transactions?

Even if your winnings are not taxable, keeping records of your gambling transactions is a sensible practice. For most recreational players, the practical reason is to have a clear picture of their own activity rather than a tax obligation.

However, if there is any possibility that your gambling activity could be characterised as a business — because of its scale, regularity or the income it generates — records become important. The ATO expects taxpayers who carry on a business to keep records that explain their income and expenses.

E-wallet transaction histories are a useful starting point. Most e-wallet providers allow you to download a statement or export a transaction history. This will show deposits to gambling sites, withdrawals from them, and the dates and amounts involved. Keeping these records, along with any relevant correspondence, means you have the documentation available if the ATO ever asks questions.

For recreational players, records also help with responsible gambling — knowing how much you have deposited and withdrawn over time gives an accurate picture of net activity rather than relying on memory.

1. Log in to your e-wallet account and locate the transaction history or statements section.
2. Filter or export transactions related to gambling deposits and withdrawals, noting the date, amount and counterparty for each.
3. Save the exported file in a secure location, such as an encrypted folder or password-protected cloud storage.
4. Repeat this process periodically — for example, at the end of each financial year — so records remain current.
5. If you believe your gambling activity may amount to a business, seek advice from a registered tax agent before lodging your return.

Where to Confirm the Rules and Get Advice

The authoritative source for Australian tax rules on gambling is the ATO. Its guidance on gambling activities is publicly available and explains the recreational versus business distinction in plain language.

State and territory revenue offices administer gaming taxes on operators, but individual player winnings are a federal income tax matter handled by the ATO.

If your situation is straightforward — you play occasionally for recreation and do not rely on gambling for income — the ATO's published guidance is likely sufficient to understand your position. If your situation is more complex, or if you are unsure whether your activity could be treated as a business, a registered tax agent can provide advice specific to your circumstances. The Tax Practitioners Board maintains a public register of registered tax agents at tpb.gov.au.

This page provides general information only. It is not tax advice, and it does not account for your individual circumstances. Do not rely on it as a substitute for advice from a registered tax agent.