For a recreational player, usually not. The Australian Taxation Office's Taxation Ruling IT 2655, on betting and gambling, says there is no Australian case in which the winnings of a mere punter have been held to be assessable, and quotes the Full Federal Court that gambling as ordinarily conducted would seldom be a business, even with large gains or losses. The ruling turns on whether gambling is carried on as a business, and says gambling with a significant element of skill is more likely to have tax consequences than gambling on random events. Its words are quoted below; this is the ruling, not tax advice.
What the source itself publishes
Hill J. stated that if a mere punter is to be held to be carrying on a business it will be because the relevant betting activities will be systematically conducted so as to get the most favourable odds obtainable.
If a player's betting activities are systematically organised to secure the most favourable odds, they may be considered as carrying on a business. This treatment depends on how their activities are conducted, not just on participation in games. The way bets are placed and managed is important under this clause.
The Full Federal Court (Pincus, French and Gummow JJ) in Brajkovich stated that gambling, as ordinarily conducted by members of the gambling public, would seldom be a business even where large gains or losses are involved.
If you gamble in the usual way that most people do, your activity is generally not considered a business, even if you win or lose large amounts. This means your gambling is usually treated as a personal activity under this guideline. The court decision applies to typical gambling as carried out by members of the public.
The Court added that gambling which involves a significant element of skill is more likely to have tax consequences than gambling on merely random events.
If your gambling involves a significant element of skill, there is a greater chance it could have tax consequences for you. Gambling on events that are purely random is less likely to lead to tax consequences according to this clause. This applies as described by the Court.
The Commissioner accepts that it is possible for a mere punter to be carrying on a business of betting or gambling but considers that it will be rare for a taxpayer with no connection with racing other than betting to be carrying on a business of betting or gambling.
This clause means that, while it is possible for someone who simply places bets to be considered as running a gambling business, the Commissioner views this as uncommon if the person's only involvement is betting and they have no other connection to racing. This affects how your betting activities might be treated for taxation purposes.
There is no Australian case in which the winnings of a mere punter have been held to be assessable (or the losses deductible).
If you are a typical player, your winnings have not been counted as assessable income under Australian law, and your losses have not been deductible. This is based on the outcomes of cases that have been decided.
Taxation Ruling IT 2655, Australian Taxation Office, https://www.ato.gov.au/law/view/document?DocID=ITR/IT2655/NAT/ATO/00001, snapshot of 14 May 2026 read from the Wayback Machine on 4 October 2026.
However, you don't need to declare prizes won in ordinary lotteries such as lotto draws and raffles.
If you win a prize from standard lotteries or raffles, you do not have to report it. This means you are not required to include these winnings when managing your obligations. Your responsibilities do not change for prizes from these sources.
Australian Taxation Office on income you must declare, https://www.ato.gov.au/individuals-and-families/income-deductions-offsets-and-records/income-you-must-declare/scholarships-prizes-and-awards/prizes-and-awards, snapshot of 3 September 2026 read from the Wayback Machine on 18 September 2026.
What this does not settle
This page quotes the tax office's ruling and one of its pages from dated archive snapshots. It is not tax advice: a person whose gambling is run as a business, or who works in gambling, is in the position the ruling sets apart, and the office can change its guidance after the dates shown.
Licence status in Australia
None of the sites on this page about tax on winnings names an Australian licence; each is an offshore operator as far as Australian law is concerned. The Interactive Gambling Act 2001 and the ACMA's powers under it are quoted on our law page. Amounts are quoted as each operator prints them; nothing is converted to A$.
Play safely
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