Crypto tax clarity in Australia: What online gambling players need to know in 2025

Aussie crypto gamblers get tax clarity as the ATO confirms winnings from lotteries and game shows aren’t immediately subject to capital gains.

Aussie online gamblers now have clarity about whether their winnings count as capital gains and how much to report on their taxes. 

The Australian Taxation Office has offered new guidance regarding crypto assets, specifically with regard to gambling. As it explains, crypto assets acquired through the process of game shows and ordinary lotteries are not considered ordinary income and thus are not subject to capital gains tax.

This clarification is more needed than ever before, given the fact that online gambling is quite popular among  Aussies. According to an article by gambling expert Wilan Van Wyk, which offers a list of online casinos recommended for Australian players, there are a myriad of benefits to be had, including bonuses and a wider variety of games.

How are crypto assets to be disposed of?

As the recent guide explains, gambling and prize draws/lotteries, such as lotto draws and raffles, are ways that consumers can acquire or dispose of crypto assets. Once the crypto is acquired from these sources, whether the player made a profit or loss, they can then hold it as an investment. 

For capital gains tax, consumers are advised not to include winnings or losses from gambling or a game or a competition with prizes. Once the assets are disposed of, however, this is where the tax implication comes in.

As illustrated by the guide, a player who spends $100 on an online lottery and wins $20,000 isn’t immediately subject to any tax. If they hold on to the asset and then dispose of it years later when it is now worth $30,000, only the $10,000 amount is considered capital gains. Additionally, he can also enjoy a capital gains discount as he has held on to the asset for over 12 months. 

“If you dispose of it, your crypto investment may be subject to CGT. You are likely to make a capital gain or capital loss on the disposal. The cost base of the crypto asset is its market value at the time you won it,” the official statement explains.

This helps to shed light on how online gambling players should handle their tax payments. As per stats from the Australian Institute of Health and Welfare, the country is home to 18% of the poker/slot machines in existence, despite Aussies only being 1% of the world’s population.

Then it is worth considering the number of crypto users in the country. Mitrade estimates that about 32% of Australians use crypto in some capacity, one of the highest figures in the world. This would suggest that many Aussies will be gambling with crypto and thus should know how to pay tax on it. 

The Australian Taxation Office also offers guides on dealing with crypto transactions via gift cards, lost/stolen crypto, and even donations. Needless to say, Aussie crypto users aren’t being left in the dark, no matter which way they use crypto assets.