Provinces

Are gambling winnings taxable in Canada?

Answer the questions in the tree below to see if your gambling winnings are taxable in Canada. Each answer shows the Canada Revenue Agency text that applies.

Answer up to three questions

Your answer updates as you tap

Example answer

Usually not taxable

Betting, even regular and systematic, is generally not seen as a business – and only a gambling business makes winnings taxable income.

Interest you earn later on the money is a separate question – see question 3.

Folio ¶1.13 · canada.ca
Gambling - even regular, frequent and systematic gambling - is something that by its nature is not generally regarded as a commercial activity except under very exceptional circumstances.

Saved copy · checked Oct 27, 2026

Folio ¶1.12 · canada.ca
1.12 An individual's gambling activities may result in taxable business income or a business loss. This will be the case if the gambling activities constitute a source of income (that is, carrying on the business of gambling).

Saved copy · checked Oct 27, 2026

  1. 1. Where did the money come from?

  2. 2. Tick what describes your betting (the CRA criteria):

    Criteria in the folio · canada.ca
    the degree of organization that is present in the pursuit of this activity by the taxpayer, the existence of special knowledge or inside information that enables the taxpayer to reduce the element of chance, the taxpayer's intention to gamble for pleasure as compared with any intention to gamble for profit as a means of gaining a livelihood, and the extent of the taxpayer's gambling activities, including the number and frequency of bets.

    Saved copy · checked Oct 27, 2026

  3. 3. Did you invest the winnings and earn interest?

Not tax advice. This follows the CRA’s Income Tax Folio S3-F9-C1 word for word. For your own case, ask the CRA or a tax professional. We have no source yet for winnings taxed in another country, so that case is not covered.

Woman on a bench reading a document with a calculator

The tree in four questions

  1. Was it a lottery prize?A lottery scheme prize is not taxable, except when it is employment, business or property income, or a prize for achievement.
  2. Do you bet for pleasure?Casual betting, even regular and frequent betting, is generally not a commercial activity. It is usually not taxed.
  3. Is betting your business?Gambling can be business income only in very exceptional cases, such as organized play using inside information and skill.
  4. Did lottery winnings earn interest?Interest you earn when you invest lottery winnings must be reported on your return.

Usually not taxed vs can be taxed

Usually not taxed

  • A prize from a lottery scheme
  • Casual betting for pleasure
  • Regular, frequent, systematic gambling as a pastime
  • Gambling that is not a source of income

Can be taxed

  • Interest earned when you invest lottery winnings
  • Gambling carried on as a business
  • Profits from bookmaking or running a gambling establishment
  • A lottery prize that is employment, business or property income
  • A lottery prize that is a prize for achievement

What the CRA folio says

Lottery prize
“The amount or value of a prize received by a taxpayer from a lottery scheme is not taxable as either a capital gain or income.”
Lottery prize exception
A lottery prize can be taxed if it counts as income from employment, business or property, or as a prize for achievement.
Gambling as a business
“An individual's gambling activities may result in taxable business income or a business loss” – but only if they are carrying on the business of gambling.
Regular gambling
“Gambling – even regular, frequent and systematic gambling – is something that by its nature is not generally regarded as a commercial activity except under very exceptional circumstances.”
Signs of a business
The CRA looks at how organized the activity is, special knowledge or inside information that reduces chance, and whether you gamble for pleasure.
Bookmaking profits
Profits from bookmaking or from running any gambling establishment, legal or not, are business income.

Claim a PROLINE prize

Where and how to cash PROLINE winnings.

Rules by province

Who runs sports betting in each province and what to check.

Ontario

iGaming Ontario, AGCO and PROLINE+ in one place.

Sources

Questions

Do you pay taxes on sports betting in Canada?

For most people, no. The CRA says even regular, frequent and systematic gambling is generally not a commercial activity. It can be business income only in very exceptional cases, such as using inside information, knowledge and skill.

Are casino winnings taxed in Canada?

The CRA folio does not name casinos. It says gambling in general is business income only in very exceptional circumstances. Profits from running a gambling establishment are business income.

Do I have to report interest on lottery winnings?

Yes. The CRA says any interest you earn when you invest lottery winnings must be reported on your return.

What about US gambling winnings for a Canadian resident?

This page covers only the CRA folio on Canadian tax. It does not cover US rules or forms. Ask the CRA or a cross-border tax accountant about winnings from another country.