Hello,
I been gambling through a mobile phone APP from a USA company and any winnings are paid through paypal. The game involves a PVP mini games and winner takes the money while the house takes a cut.
However, when I was about to lodge my tax return. All my winnings are prefilled under business transactions.
I thought gambling winnings are not taxable in Australia.
Thanks,
Paul
Hi @Paul.M
PayPal need to report business transactions to us. This is a fraud avoidance measure.
Gambling winnings are assessable income if it's considered professional earnings.
To help determine this, objective criteria must be used. Some of the tests that can be used include:
PayPal must've believed your winnings to be of a professional nature. They would judge this depending on amounts and frequency of transactions.
If you can determine your gambling to be a hobby, you can remove the prefilled data.
Hi @Paul.M
PayPal need to report business transactions to us. This is a fraud avoidance measure.
Gambling winnings are assessable income if it's considered professional earnings.
To help determine this, objective criteria must be used. Some of the tests that can be used include:
PayPal must've believed your winnings to be of a professional nature. They would judge this depending on amounts and frequency of transactions.
If you can determine your gambling to be a hobby, you can remove the prefilled data.
15 Apr 2026 · 4 min read time
16 July 2025 · 5 min read time
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