Are roulette winnings in Australia subject to tax?

The winnings from roulette attract different tax treatments in Australia, depending on the gambler's status as a professional or purely as a form of recreation.

Recreational Gamblers

To the casual gamblers, roulette winnings are usually not taxable. The Australian Taxation Office maintains that these types of gains represent a windfall rather than an activity planned to produce a profit. Therefore, amateur players should not report their gambling wins as income.

Professional Gamblers

On the other hand, gambling conducted as a business or representing a substantial source of income may define the person as a professional gambler. In such a case, the winnings will be subjected to taxation. The ATO may define a person as a professional gambler based on various factors such as whether the gambling activity is conducted in a business-like manner and expertise level of the gambler.

So, as we can see, casual winnings from roulette in Australia are generally not taxable, while for professional gamblers they are obliged to report their income and pay called-for taxation. Everybody who is unsure about his or her status is advised to consult the tax professional for better positioning regarding ATO regulations.