Are crypto casino winnings taxable? It depends where you live
What the IRS, HMRC, the CRA and the ATO say about gambling winnings and the crypto you play with, in plain language.
In the US, all gambling winnings are taxable, crypto included, and from 2026 you can deduct only 90% of your losses. In the UK, Canada and Australia, winnings from casual gambling generally aren't taxed. Everywhere on this page, crypto counts as property or an asset, so selling, swapping or spending it, possibly including depositing it at a casino, can trigger a separate capital gains bill.
Crypto casino tax questions usually mix up two different things. One is the gambling: whether a win counts as income. The other is the crypto: whether moving coins in and out of a casino counts as selling them. Tax authorities answer these separately, and a player can owe nothing on the first and still owe something on the second. This page covers both for four countries whose tax authorities publish clear guidance, then the general rule for everywhere else.
This is general information compiled from official guidance, not tax advice. Rules depend on your residence and circumstances, and they change. If the amounts matter, talk to a qualified tax adviser in your country.
Two separate questions: the win and the coin
United States: winnings are taxable, losses capped at 90%
The IRS position is short: gambling winnings are fully taxable and must be reported on your return, and that includes the fair market value of non-cash prizes. A win paid in bitcoin is income at its dollar value when you receive it. A US-licensed casino issues Form W-2G for certain wins, but the IRS says you must report all winnings, including those not shown on a W-2G, so playing offshore doesn't change what you owe.
Losses are where 2026 is different. You can deduct gambling losses only if you itemize on Schedule A and keep records, and never more than your winnings. Section 70114 of the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025) adds a further limit from the 2026 tax year: only 90% of your losses count. Win $10,000 and lose $10,000 over a year and you can deduct $9,000, leaving $1,000 taxable even though you broke even. The IRS has proposed regulations to match. Most people who report winnings don't itemize at all, which means they can't deduct losses in the first place.
The crypto side runs in parallel. The IRS treats digital assets as property, not currency. Disposing of them includes selling for dollars, swapping one coin for another, and trading them for property, goods or services, in any amount. Moving coins between wallets you own is generally not a disposal. A casino account isn't a wallet you control, so depositing appreciated crypto can be a taxable disposal; get advice if you deposit coins that have gained a lot since you bought them. Form 1040 asks every filer a yes/no digital asset question, and US brokers now report sales on Form 1099-DA.
One practical point: many offshore crypto casinos, Gamdom included, list the US as a restricted country in their terms. Tax is only one of the reasons to check whether a site accepts players from your state before you sign up.
United Kingdom: winnings are tax-free, crypto gains aren't
HMRC's Capital Gains Manual says winnings from betting, lotteries and games with prizes are not chargeable gains, and its Business Income Manual says betting and gambling, as such, don't amount to a trade. For a UK player, casino winnings are not taxed and gambling losses can't be used as tax losses. Betting winnings don't go on the Capital Gains Tax pages of a Self Assessment return.
Crypto doesn't get the same treatment. HMRC's Cryptoassets Manual has a page explaining why it does not consider buying and selling cryptoassets to be gambling, and it expects most individuals to be investors rather than traders. Gains on disposals, which include selling tokens, exchanging one token for another, using them to pay for goods or services and giving them away, can be subject to Capital Gains Tax once your gains for the year pass the annual tax-free allowance. So a win is tax-free, but the coins you won and later sell at a higher price can still produce a taxable gain.
Gamdom's terms list the United Kingdom as a restricted country. UK players have UK-licensed operators, which must follow UK Gambling Commission rules.
Canada: casual winnings aren't taxed, crypto dispositions can be
The Canada Revenue Agency's audit manual says lottery and other winnings are non-taxable, unless you're in the business of gambling, in which case proceeds and losses count for income tax. It notes that skill games such as poker can become a business when played in a sufficiently organized, commercial way. For a recreational casino player, wins aren't income and losses aren't deductible.
Crypto is a separate question. The CRA says holding crypto is generally not taxable, but disposing of it, including selling, trading or exchanging it, converting it to Canadian dollars or using it to buy goods or services, can have tax consequences. Depending on the facts, the result is either business income (fully taxable) or a capital gain (half of which is taxable). The CRA has said its crypto guide is being updated, so check the current version.
Australia: gambling is outside CGT, crypto you keep isn't
The Australian Taxation Office has a page specifically on crypto prizes and gambling winnings (updated June 22, 2026). It says not to include capital gains or losses made directly from gambling winnings or losses in your CGT calculations. If you then hold the crypto you won and later dispose of it, that disposal may be subject to CGT, and your cost base is the market value of the coins when you won them. The ATO's example: a $20,000 crypto prize is not income, but selling those coins two years later for $30,000 produces a $10,000 capital gain, halved by the 12-month CGT discount.
Like the UK and US, Australia is on Gamdom's restricted list, and offering online casino games to Australians is illegal under the Interactive Gambling Act.
Ad · GambleClear earns a commission if you sign up to Gamdom through this link. Gamdom isn't available in the US, UK or Australia; check our restricted countries list first. Disclosure
Everywhere else
Most countries split the question the same way: is gambling income taxed, and is crypto taxed when you dispose of it? The answers vary a lot. Some countries tax winnings only from operators they haven't licensed, some tax crypto gains at a flat rate, and in some, playing at an offshore casino is itself against the law, which matters more than the tax. Check your national tax authority's own guidance on both gambling and crypto, and our restricted countries page for whether Gamdom accepts players where you live.
Records worth keeping
- Every deposit and withdrawal: date, coin, amount, transaction hash and the coin's value in your currency at that moment.
- Your purchase price for any coin you deposit, so a gain or loss can be worked out later.
- Session-level wins and losses if you're in the US and itemize. The IRS asks for a diary or similar record plus statements.
- Screenshots or exports of the casino's transaction history. Accounts close, and sites go offline.
- Rakeback and bonus credits you receive, noted separately from wins.
Our crypto deposit and withdrawal guide explains network fees and confirmations, which also feed into your records.
Sources
- IRS Topic no. 419, Gambling income and losses (reviewed September 24, 2026)
- IRS: Digital assets (reviewed September 2, 2026)
- Congress.gov: H.R.1, Public Law 119-21, section 70114 (wagering loss limit)
- HMRC Capital Gains Manual CG11700 (betting winnings not chargeable gains)
- HMRC Business Income Manual BIM22015 (betting and gambling)
- HMRC Cryptoassets Manual CRYPTO10450 (buying and selling cryptoassets is not gambling)
- GOV.UK: Check if you need to pay tax when you sell cryptoassets
- CRA Income Tax Audit Manual, chapter 13 (non-taxable winnings, business of gambling)
- CRA: Reporting income from crypto-asset transactions
- ATO: Crypto asset prizes and gambling winnings (updated June 22, 2026)
- Gamdom Terms and Conditions, version last updated by Gamdom on October 1, 2025, section 3.4 (restricted countries)
Frequently asked questions
Are crypto casino winnings taxable?
It depends on where you live. In the US, gambling winnings are fully taxable whether you're paid in dollars or crypto. In the UK, Canada and Australia, winnings from casual gambling generally aren't taxed. In all four, the crypto itself is treated as property or an asset, so selling, swapping or spending it can create a separate capital gain or loss.
Do I pay tax when I deposit crypto into a casino?
Possibly. The IRS, HMRC and CRA all treat spending or exchanging crypto as a disposal, and sending coins to a casino you don't control isn't a move between your own wallets. If the coin has risen in value since you bought it, that deposit may realise a gain. Tax authorities haven't published casino-specific guidance on this, so ask a tax professional about your case.
Can I deduct gambling losses in the US?
Only if you itemize, and only up to your gambling winnings. From the 2026 tax year, the One Big Beautiful Bill Act limits the deduction to 90% of your losses, so someone who wins $10,000 and loses $10,000 in a year can deduct $9,000 and still has $1,000 of taxable income. Keep a record of every session.
Do UK players pay tax on casino winnings?
No. HMRC treats betting and gambling winnings as outside both Income Tax and Capital Gains Tax, and gambling losses aren't allowable. Crypto is different: HMRC says buying and selling crypto is not gambling, so gains when you sell, swap or spend tokens can be subject to Capital Gains Tax.
Does the casino report my winnings to the tax authority?
A US-licensed casino issues Form W-2G for certain wins; an offshore crypto casino generally won't. That doesn't change what you owe: the IRS says you must report all gambling winnings, including those not shown on a W-2G. Crypto exchanges are a separate matter, as US brokers now report sales on Form 1099-DA.
Related: where Gamdom is available, no-KYC crypto casinos, explained and the crypto casino glossary. Gambling loses money over time on average; if it's stopped being fun, see our responsible gambling page.