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_quest3412(Newbie)Newbie
13 Sept 2021

Hey Everyone,

I've been wondering about how tax applies to professional gamblers. It seems that tax winnings are usually untaxed but once a certain level of sophistican and scale is reached you become a professional gambler and your winnings become taxed.

My question is as follows if I was a professional gambler and I put $5000 in and made $7000 ($2000 profit and the inital investment returned) is my taxable income the $2000 gain or the total $7000 despite the inital outlay?

9,889 views
5 replies
9,889 views
5 replies

Most helpful response

Most helpful reply

Glenn4802(Devotee)Devotee
13 Sept 2021

If the amount was assessable, you would only be taxed on the $2,000 gain.

All replies

TeddyATO(Community Support)Community Support
15 Sept 2021

Hi @quest3412,

@Glenn4802 is right, in regards to your example. The profit of $2000 would be considered assessable income if you were recognised as a professional gambler.

You may be interest in the IT2655 taxation ruling which the ATO uses to define professional gambling.

RRD2224(I'm new)I'm new
15 June 2024

I have lost from Gambling. Can I claim the loss from the business expenses? I am the diamond level in Casino whether it is able to identify as the professional gambler to claim the operation loss? The amount is about $50K annually.

AnitaATO(Community Support)Community Support
19 June 2024

Hi @RRD2224,


Identifying as a professional gambler means that you're doing it in a business-like manner. If you're a professional, then your winnings will be classed as income. This will need to be included on your tax return. You'll also have to pay tax on this income.


Losses are not deductible unless you're a professional gambler gambling in a business-like manner.

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