What are the taxes on casinos in Canada?

The online or land-based casino gaming sector is gaining momentum in Canada. Several Canadian players find their account by having fun on the casino games that they find in the game rooms. Players from other countries are invited to the canadian online casinos to play it. We can ask ourselves the question of whether the winnings from Canadian casinos are taxable. Discover our answer.

For Canadian casino game players, do they have to pay taxes on their winnings?

In principle, no, because Canadian legislation does not consider land-based or online casino games as money-making leisure activities. She considers them as a simple distraction without the purpose of making money. For the taxman, casino games are comparable to a fun activity , and therefore are not concerned with the payment of taxes.

However, for professional players, their winnings from online or land-based casinos are taxable . In Canada, is considered by the tax authorities as a professional player, the one whose main income consists of the winnings from the casino games terrestrial or online.

For what reasons does the Canadian tax authorities not tax winnings from casinos in Canada?

We mentioned the first reason in the previous paragraph. The Canadian tax authorities do not consider casino games as lucrative but rather as simple distractions . The other reason is that, in case taxes are applied on casino income, the law provides that the winner can deduct all his losses on the amount of taxes.

In addition, the player will be able to deduct all other costs generated during his stay in a physical casino. Which does not suit the taxman at all, or even the casinos.

This is all to the advantage of the Canadian player because he cashes in 100% of his winnings from casino games. Isn't that great?

Do these rules apply throughout Canada?

In Canada, in the field of gambling in general and casino games in particular, each province has the right to define and apply its own rules. Faced with this, it is possible that the tax authorities of a Canadian province decide to tax the winnings from casino games on its territory. But so far, no province in Canada applies taxes on these incomes.

Be aware that if you are going to play in a jurisdiction other than your own and you win money, there will be no no tax implications on your earnings. Not a single dollar will be deducted from your income from the casino. You will recover all of your winnings, without paying a cent to the taxman.