Do you pay tax on casino winnings in Canada?

For recreational players in Canada, casino winnings are generally not taxable. Here’s the plain-language version, plus the one case where it changes.

The general rule

The Canada Revenue Agency treats casual gambling winnings as a windfall, not income. If you play for fun, your winnings are yours to keep — no tax return line required.

The exception

If gambling is your business — you play professionally, systematically, with an expectation of profit — the CRA may treat it as taxable income. This is rare and fact-specific. If it might apply to you, talk to an accountant.

Interest is different

If you win a large sum and it earns interest sitting in an account, that interest is taxable like any other. The winnings themselves are not; the interest they generate is.

This is general information, not tax advice. For your specific situation, consult a qualified professional.