In this guide
- 1How is gambling taxed in Canada?
- 2Lottery winnings taxes in Canada
- 3Withdrawing your money from a casino in Canada
- 4Canada gambling tax laws by province
- 5Our top recommended online casinos in Canada
- 6Features offered by online casinos in Canada
- 7Crypto gambling taxes in Canada
+1 more sections below
Gambling taxes in Canada guide 2026
By Chris Gonat
Get the full picture on gambling taxes in Canada with our comprehensive guide. Find out how the gambling winnings tax applies to online casino play and sports betting, along with everything you need to know about the lottery winnings tax. Join the action today at online casinos where Canadian players pay no tax.
Last updated 12 November 2026
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How is gambling taxed in Canada?
Fortunately, in the majority of situations your winnings are not taxable - unless you happen to be a professional gambler. Even so, knowing where you stand with the tax authorities matters.
What you don’t pay tax on
Under Paragraph 40(2)(F) of the Income Tax Act, Canadians are not required to pay tax on gambling winnings. That covers money won at online casinos, at land-based casinos, through sports betting and from horse racing. The rule applies in every province, so no matter where in Canada you play, you almost certainly owe nothing on your winnings.
What you do need to pay
Interest that your winnings generate, on the other hand, does have to be reported and taxed. Say you win at a casino and put the money into a savings account - the interest it earns becomes taxable. The same goes if you invest your winnings in a stock that pays dividends: those payouts are taxable too.
What you must report
In fact, any extra income a Canadian resident earns by investing winnings has to be declared on a T5 slip, a T3 slip and a T5013 form. It counts as investment income and is taxed at rates of 15% to 33%, depending on how much you earn.
If your investment income comes in under $50, a T5 form may never reach you, but reporting it is still mandatory. Failing to declare such earnings can lead to prosecution by the tax authorities and substantial fines. The amounts also belong on your personal income tax return, whose rates differ from province to province.
On top of that, professional gamblers who make a living from poker or sports betting must include their winnings in taxable income, which factors into both provincial and federal tax assessments. In that situation every dollar won must be reported, though losses can be deducted from the taxable amount.
Lottery winnings taxes in Canada
Taxes on lottery prizes are governed by the same rules that apply to gambling winnings, so direct profits remain tax-free. That said, just like money earned from casino play or sports betting, any interest your lottery payout generates in a savings account - or dividends from investments made with it - counts as income and has to be reported for both federal and provincial tax purposes.
Withdrawing your money from a casino in Canada
Canadian gambling platforms offer a variety of safe, secure, and handy payment options, so you can top up your account and cash out your winnings without hassle.
At sites licensed by the Alcohol and Gaming Commission of Ontario (AGCO), you’ll find payment methods that most Canadians already use in daily life, including Visa, Mastercard, and online banking. Well-known global e-wallets such as PayPal, Skrill, and Neteller are accepted too.
Cryptocurrencies are an option in plenty of Canadian provinces as well, though gambling sites in Ontario and Alberta won’t take crypto payments.
With most payment methods, deposits land instantly, and the top Canadian online gambling platforms charge no withdrawal fees. The majority of withdrawals are completed within a few days, while e-wallets and cryptocurrencies have traditionally been the quickest. At some gambling sites, certain e-wallet and crypto cashouts arrive instantly.
Canada gambling tax laws by province
While Canada does not impose a direct tax on gambling, professional players - and anyone earning interest on their winnings - have to report those amounts as part of their income tax. Provincial rates apply on top of federal income tax, and each rate applies only to the income falling within its bracket; the Canada Revenue Agency publishes 2026 rates and brackets for every province and territory, and the rate you pay is set by where you reside on December 31, 2026. Below is an overview of what you can expect to owe on gambling interest in each province.
Ontario
Depending on how much you earn, the gambling winnings tax on your interest ranges from 5.05% to 13.16% in Ontario. As with Ontario, Ottawa casino sites are licensed by the Alcohol and Gaming Commission of Ontario (AGCO). For online casinos in Toronto, ON-specific tax details are often available on those sites.
Quebec
Professional players, and anyone collecting interest on winnings at Quebec casino sites including Montreal, face a 14% rate on their first $49,275 of income, with more owing as their yearly earnings grow. For Quebec, the Canada Revenue Agency points residents to Revenu Québec’s income tax rates for 2026.
British Columbia
Income from online casinos in British Columbia, Vancouver included, is divided into seven tax brackets, beginning at 5.06% on your first $45,654 and reaching 20.50% on anything above $240,716.
Alberta
The only province in Canada where every tax rate is a whole number, Alberta charges 10% on your first $142,292. Four more brackets apply across Calgary casino sites and the rest of the province, topping out at 15% on income above $341,502.
Manitoba
Manitoba uses three tax brackets, starting at 10.80% for earnings of up to $36,842. Earnings between $36,843 and $79,625 are taxed at 12.75%. Anything above $79,625 is taxed at 17.40%.
Saskatchewan
Professional players in Saskatchewan are taxed at 10.50% on their initial $49,720 of income. The rate then sits at 12.50% between $49,721 and $142,058, and at 14.50%.
Nova Scotia
When you add interest from your winnings to your Nova Scotia income tax, the rate on your first $29,590 is 8.79%. Four more brackets follow depending on how much you earn, topping out at 21% on earnings above $150,000.
New Brunswick
The lowest income tax bracket for gambling winnings interest in New Brunswick begins at 9.4% for the first $47,715. The top bracket is 19.5% on anything over $176,756.
Prince Edward Island
Prince Edward Island gives gamblers only three income tax brackets to think about. Winnings included in your first $31,984 face a 9.8% rate. Earnings from $31,985 to $63,969 fall at 13.8%, and anything over $63,969 is taxed at 16.7%.
Newfoundland and Labrador
In Newfoundland and Labrador, personal income tax runs from 8.7% on your first $41,457 up to 21.8% on anything over $1,059,000, with six brackets in between.
Find gambling options in your area
Take a look at our dedicated guides to discover and compare legal casinos in your province.
Ontario : Pick from 82 legal casinos holding AGCO licences. Sticking with these keeps your play safe and regulated.
Quebec : Players can use Espacejeux (Loto-Quebec) or place bets with Mise-O-Jeu. Offshore casinos are still within reach.
British Columbia : The BCLC runs PlayNow, which covers online casino, poker, bingo and lottery. Internationally licensed sites are another option.
Alberta : We expect the province to open a private, regulated market much like Ontario’s. Until then, offshore operators remain available.
New Brunswick : New Brunswick offers two land-based casinos, the provincial ALC.ca site, or offshore sites. The guide below covers these in more detail.
Newfoundland and Labrador : NL residents can play through ALC.ca or internationally licensed casinos. The area has no land-based venues.
Newfoundland & Labrador casinos
Nova Scotia : Online players can use the provincially run ALC.ca or licensed offshore sites such as the ones we recommend. Three land-based casinos also operate in the province.
Manitoba : PlayNow Manitoba is the province’s only official online casino, though international sites are also available.
Saskatchewan : PlayNow arrived in Saskatchewan in 2023. Every casino we feature on this page is also open to players in the province. Saskatchewan casinos
Our top recommended online casinos in Canada
Because gambling winnings aren’t taxed directly in any province across Canada - unless you happen to be a professional gambler - you can choose an online casino on its own merits and hold on to every dollar you win. Our top pick for November 2026 is Betinia, which offers a strong games library, secure payment methods, and responsive customer support.
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Features offered by online casinos in Canada
So now you know that winnings from your online casino aren’t taxed - all that’s left is picking a site to play at. But what should you expect from the top casinos in Canada? Below, we’ve highlighted a few of the key features you’ll come across at the country’s best gambling operators, including at our recommended online casinos.
| 🎮 Best online casino games | Slots, blackjack, roulette, baccarat, poker |
| ⚖️ Gambling licenses | Alcohol and Gaming Commission Ontario (AGCO), Malta Gaming Authority (MGA), Kahnawake Gaming Commission (KGC) |
| 💵 Withdrawal methods | Visa, Mastercard, online banking, e-wallets |
| ⚡ Withdrawal speeds | Instant to three days |
| 💲 Withdrawal fees | None - unless using cryptocurrency |
| 🏆 Best online casino | Betinia |
Crypto gambling taxes in Canada
As we noted earlier, casinos right across Canada accept cryptocurrencies for both deposits and withdrawals. The exception is Ontario and Alberta, where these payment options aren’t available. No matter which coin you choose - Bitcoin, Ethereum or Bitcash - the winnings you cash out through crypto won’t be taxed as gambling income.
The picture changes, though, if the money you’ve withdrawn starts earning interest, or if you play as a professional. In those cases you’ll owe tax on those earnings, exactly as you would on any other gambling payout.
Fees work differently with crypto than with most other withdrawal methods, which gambling sites usually process free of charge. Your casino may add a small charge for handling the withdrawal request, and your crypto wallet can take its own cut for the transaction. Read the terms and conditions of your wallet and of the gambling site before you claim a payout.
Canada gambling taxes: FAQs
Do professional gamblers need to pay income tax in Canada?
Yes - in Canada, professional gamblers are required to pay income tax on their winnings. You have to report everything you win when you file, though you’re also allowed to subtract your losses.
Is sports betting taxable in Ontario?
For the majority of bettors, sports betting winnings in Ontario come to you tax-free. Professional gamblers are the exception - they must report both their betting wins and losses. On top of that, any interest your gambling winnings generate has to be counted as part of your income for tax purposes.
Are lottery winnings taxed in Ontario?
Just like casino play and sports betting, lottery prizes are tax-free in Canada. No matter which province you live in, the full amount of your win is yours to keep. Should your winnings earn interest, that interest can become eligible for provincial income tax.
Are gambling winnings taxable in Ontario?
If you gamble for fun in Ontario, you don’t owe tax on what you win - that covers casino games, sports betting and poker. Professional gamblers are the only ones who have to pay income tax on gambling winnings.
Are online gambling losses tax deductible in Canada?
Yes. If you’re a professional gambler in Canada and you’re paying tax on your winnings, your gambling losses can be deducted. Our advice is to keep careful records of your profits and losses so that filing your taxes goes more smoothly.
Are Bet365 winnings taxable in Canada?
Like every sportsbook operating in Canada, Bet365 pays out winnings tax-free. Provided your funds qualify for withdrawal, you can cash out at Bet365 and keep the whole amount. If you gamble as a professional, that money has to be taxed as income.