Whether crypto casino or sportsbook winnings are taxable depends on where you live. In the United States they are fully taxable and must be reported at their fair market value when you receive them. In the UK and Canada, casual gambling winnings are generally not taxed, but later sales or swaps of the crypto you won can trigger capital gains tax. Australia takes a similar approach for casual gamblers. Spain generally taxes gambling winnings under personal income tax rules, with a special regime for state lottery prizes. Brazil’s 2025 framework taxes bettors’ net prizes from regulated fixed-odds betting at 15%.
United States: Yes—report all crypto gambling winnings
All gambling winnings are taxable income. This includes casino, sportsbook, poker, lotteries, raffles, and non-cash prizes; you must report the full amount even if no Form W-2G is issued.
Casinos issue Form W-2G at certain thresholds (for example, $1,200+ on slots or bingo, $1,500+ on keno, $5,000+ poker tournaments; plus 300×-wager rules for some bets). These reporting thresholds don’t change your duty to report all income.
If your payout is in crypto, you must convert it to U.S. dollars at its fair market value on the date and time you receive it and report that amount as income. The IRS treats digital assets as property; record the USD value and keep the transaction details.
When you later sell, swap, or spend that crypto, you calculate capital gain or loss relative to the basis established at receipt and typically report on Form 8949/Schedule D.
Casual gamblers may deduct gambling losses only up to the amount of gambling winnings and generally only if they itemize; keep detailed records. State taxes may also apply.
United Kingdom: Generally no tax on player winnings
HMRC’s Business Income Manual confirms that betting and gambling (even by “professional” players) are not treated as a trade; player winnings are not taxed. Operators instead pay gambling duties.
However, crypto itself is still subject to UK tax rules: disposing of tokens you won—by selling, swapping, or spending—can create a Capital Gains Tax event, so keep cost-basis and transaction records.
Canada: Usually tax-free for casual gamblers, but watch your crypto disposals
CRA folio guidance treats most casual gambling winnings as non-taxable. Income earned from investing those winnings is taxable.
Crypto is taxed under general property rules. If you later sell or swap the crypto you won, you may have a capital gain or loss; the CRA generally accepts fair market value records for tax reporting.
Australia: Casual winnings are generally not assessable
The ATO indicates betting and gambling wins are not assessable unless you are carrying on a gambling business. Determination depends on facts and circumstances.
As with other countries, disposing of crypto later can create a taxable event under Australia’s CGT rules, so keep market-value and transaction records.
Spain: Winnings are taxable; special rules for state lotteries
Spain generally treats gambling prizes and gains as taxable under personal income tax rules, with reporting in the “base imponible general.” Separately, certain state lottery prizes have a special regime: amounts up to €40,000 per prize are exempt and the excess is taxed via a special levy.
Brazil (2025): 15% tax on bettors’ net prizes in regulated fixed-odds betting
Law 14.790/2023 and subsequent regulations implement a 15% individual income tax on the bettor’s net prize for fixed-odds betting, alongside a regulatory framework completed in 2024 for the market operating in 2025. Operators and bettors have specific reporting/withholding obligations under the new rules.
How to value and report crypto winnings correctly
If you’re taxed on winnings, the amount you report is the fair market value of the digital asset at the time you receive it, converted to your local currency. This date-and-time value also becomes your cost basis for future capital gains calculations when you dispose of the asset. Keep transaction hashes, timestamps, and pricing evidence.
Record-keeping checklist
Keep the game/event details, wallet addresses, TXIDs, the asset and quantity received, the exact date/time received, and the price source used to determine fair market value in local currency. This documentation is explicitly encouraged by tax authorities. UK guidance also stresses crypto record keeping for audit trails.
Common mistakes to avoid
Mixing tax-free gambling rules with crypto tax rules in your country can cause errors. For example, UK/Canada casual players might owe nothing on the win itself but still owe tax when they later sell or swap the crypto. In the United States, you must report the win at receipt, then compute gains or losses on later disposal. Always verify whether local state or provincial rules add obligations.
Forms and thresholds you’ll hear about (U.S.)
Form W-2G is issued by payers when certain thresholds are met (e.g., $1,200 slots/bingo; $1,500 keno; $5,000 poker tournaments; 300×-wager rules for certain bets). Even without a form, you must report all winnings. Later disposals of crypto are typically reported on Form 8949/Schedule D.
FAQs
Do I owe tax if I never convert the crypto to cash?
In jurisdictions where gambling winnings are taxable (e.g., the U.S.), yes—you report the fair market value when you receive the crypto, regardless of later conversion.
Can I deduct gambling losses?
In the U.S., casual gamblers can deduct losses only up to the amount of winnings and generally only if they itemize; keep meticulous records. Rules differ outside the U.S.
What if I play on an offshore crypto casino?
In the U.S., worldwide income is taxable. Reporting obligations apply regardless of where you gambled or the currency in which you were paid. Check your local law for legality and reporting.
If my country doesn’t tax player winnings, am I done?
Not necessarily. Disposing of the crypto later can create a taxable event in many countries (e.g., UK, Canada, Australia).
Are Spain’s state lottery prizes taxed like sportsbook wins?
Lottery prizes have a special regime with a €40,000 per-prize exemption and tax on the excess, which differs from betting gains.
What changed in Brazil?
From 2025, regulated fixed-odds betting operates under a framework that includes a 15% IRPF on net prizes for bettors.
Bottom line
Tax treatment of crypto gambling winnings is local. The United States taxes all gambling winnings at fair market value when received and taxes later crypto disposals. The UK, Canada, and Australia generally don’t tax casual player winnings, but still tax later crypto disposals. Spain taxes gambling gains, with a separate regime for state lottery prizes. Brazil’s new framework for 2025 taxes bettors’ net prizes at 15% in the regulated market. Keep precise records and, when in doubt, speak with a licensed tax professional in your jurisdiction.
