Do you pay taxes on gambling winnings in Ontario?

Last update at 23 July, 2025⏲️ Reading time: 5 minutes

Online gambling is becoming more and more popular in Ontario, and with it come common questions about taxes. Do you need to report your winnings? Are gambling profits taxable? And if so, who’s responsible for paying? In this guide, we explain how gambling taxes work in Ontario, whether you’re an occasional player or someone considering signing up at an online casino.

Ontario Gaming Taxes

Wondering if there are gambling taxes in Ontario is totally normal… more than that, it’s necessary!

We all want to be up to date with taxes and different local laws so we don’t have headaches later, or have to pay high fees or interest to the Canada Revenue Agency (CRA), right?

Well, the short answer to this question is no. In Ontario there are no gambling taxes, at least not for those who gamble for fun or any other reason. For professional gamblers, it’s a different story altogether.

So, if your intention is to gamble occasionally at online casinos in Ontario, in games like bingo and through casino apps, you can do so without worrying about taxes.

It doesn’t matter how much you win at gambling. You do not have to report winnings to gambling in Ontario under any circumstances, as long as you do not generate any interest on those winnings, of course.

Now, if you are a professional gambler, your winnings are taxable because local legislation and the AGCO and OLG agencies in Ontario consider that you use gambling as your own business to basically make a living.

On the other hand, if you are a player outside Canada, specifically in the United States, you also have to pay a tax. How much? We’ll see in the next point, let’s continue!

Gaming tax rates in Ontario

As mentioned above, you do not have to worry about gambling taxes in Ontario if you are a casual gambler, someone who plays bingo, roulette and other games of chance for fun and not for business. However, if you earn interest on your gambling winnings, you must pay taxes of between 5.05% and 13.16%.

If you are located in the United States and your earnings are greater than $1,200, such earnings will be subject to an automatic 30% withholding tax.

In contrast, for a professional gambler, Ontario gaming tax rates range from 15% to 33%, based on income level.

Report gambling winnings

It has become clear that most gamblers do not have to pay gambling taxes in Ontario.

However, if you generate interest on winnings or are a professional gambler, you are probably wondering how to report gambling winnings. In that case, don’t worry, we’ll cover it below!

If you earn interest on your winnings: you must use the T5 form to report your winnings from games of chance (bingo, lottery, table games, roulette…).
If you are a professional gambler: in this case, you have to report your winnings to the game with form T2125. You could also use form T5013, if there are exceptional circumstances.

In addition, you must also report gambling winnings in Ontario through your personal tax return, something that every Canadian citizen must do through the T1 form.

Is sports betting taxable in Ontario?

Fortunately, no. Sports betting is also tax-free in Ontario, as are games of chance, such as bingo, lottery, roulette and jackpots. But with certain exceptions. Which ones? The same ones we told you about before… just as you read.

Basically, sports betting is subject to the same rules as gambling in Ontario!

Only bettors who generate income from winnings and those who bet professionally have to pay taxes and report winnings through the forms mentioned in the previous point.

Is the lottery taxable in Ontario?

The lottery is also not taxable in Ontario, fortunately. So, it doesn’t matter if you win $3 or $5,000,000, that money is all yours!

But we are back to the same thing… since it is a game of chance, you must pay taxes if you generate interest on the winnings you make through the lottery.

In other words, if you use that profit to generate more profits, either through the foundation of a business or an investment in the stock market, for example, you have to pay the tax rates that apply in this case, as mentioned above. You must also do so if you are a professional gambler.

The rules are the same as we have seen throughout this guide.

Summary – Gaming taxes in Ontario

Ontario is a gambler’s paradise, especially for citizens who are not professionally involved in casino games or sports betting. There is no doubt about it.

You can play any game of chance or place as many sports bets as you want. You do not have to report the winnings you get through it, no matter how high they are.

Of course, don’t forget the exceptions we have mentioned throughout this article, and good luck!

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