As of 2025, online casino winnings in New Zealand are not taxable.
According to IRD, casino winnings aren’t considered income and are therefore exempt from income tax.
This means if you are playing casually and not for business or income-related purposes, your winnings are tax-free.
This applies to all types of gambling – lotteries, sports betting, pokies, and online casino games – as long as it is not conducted as a business or regular source of income.
However, there is an exception. If a person is gambling professionally – meaning they rely on it as a consistent source of income and treat it like a business – their winnings may become taxable under business income rules.
Table of Contents
How does Online Casino Legality Affect Taxation on Winnings?
The New Zealand government does not approve local companies to operate online casinos.
Online gambling in New Zealand is legal only when done through offshore-based casinos, i.e., those located overseas.
The Gambling Act 2003 restricts New Zealand-based companies from offering online casino games, but Kiwis are allowed to play on international platforms.
Now, here’s how legality impacts taxation:
- Winnings from overseas casinos are not considered taxable income, as long as you’re playing casually.
- The Inland Revenue Department (IRD) treats gambling winnings – whether from lotteries, pokies, or online casinos – as windfalls, not income.
- Since New Zealanders are not participating in a locally regulated industry, and gambling isn’t a profession for most users, there’s no obligation to declare winnings for tax purposes.
Are Online Casino Winnings Taxable In New Zealand?
Casino winnings are not considered taxable as they are not treated as income for individuals, according to the Inland Revenue Department (IRD).
This principle is outlined in Part C of the Income Tax Act 2007. However, an exception exists for individuals who may be classified as “professional gamblers.”
While individual winnings are usually tax-free, the tax obligations for gambling operators are more complex.
Land-based casinos in New Zealand are subject to a gaming duty, which ranges from 2.5% to 4% of their gross gaming revenue (GGR) – the difference between total wagers and winnings.
Operators of “pokie” machines face a more intricate tax regime, including venue fees, gaming machine duties (GMD) based on the number of machines and their turnover, and a problem gambling levy.
Furthermore, from 1 July 2024, a 12% offshore gambling duty applies to online gambling services provided by operators located outside New Zealand to New Zealand residents.
This duty is calculated based on offshore gambling profits, defined as amounts received from residents, minus prizes paid and any offshore betting amounts already subject to a 10% consumption charge.
When Can Casino Winnings Become Taxable?
Casino winnings can become taxable in New Zealand – but only under specific circumstances.
This usually happens when gambling stops being just a casual hobby and starts to look like a structured source of income.
For example, imagine someone named Matt who spends 40–50 hours a week playing online poker, tracks all his results in spreadsheets, follows a strict bankroll strategy, and treats it as his full-time job.
He doesn’t have any other source of income. In this case, the Inland Revenue Department (IRD) might view Matt’s gambling activity as “business-like.”
That means his winnings could be subject to income tax under the business income category.
Similarly, if someone systematically bets on sports using statistical models, subscribes to paid odds prediction tools, and consistently reinvests profits, IRD could also consider it a professional operation – even if they never formally register a business.
What the IRD looks at isn’t just how much money you’re making – it’s how you’re making it.
Are you relying on gambling as a livelihood? Do you plan your bets like a trader would manage a portfolio? Do you use tools or methods to gain a consistent edge?
If the answer is yes, then your winnings may not be tax-free anymore.
Are Players’ Big Casino Winnings Also Taxed?
No, even big winnings from online casinos are not taxed in New Zealand, as long as the player is not gambling professionally.
The size of the win doesn’t determine taxability.
For example, if you win $50,000 from an online pokie in one lucky spin, the Inland Revenue Department (IRD) still considers it a windfall gain, not taxable income. This applies whether it’s $500 or $500,000.
The key factor is your intent and behaviour, not the amount won.
If you’re gambling casually, without a system or regular strategy to earn income, your winnings remain tax-free, regardless of how big they are.
Do Casino Operators Need to Pay Tax in New Zealand?
Yes, casino operators are taxed in New Zealand, even though players themselves don’t usually pay taxes on their winnings.
Taxes for Local Casino Operators
Operators of land-based casinos and pokie venues are subject to several taxes:
- Gaming Duty: Ranges from 2.5% to 4% of Gross Gaming Revenue (GGR), which is calculated as the total amount wagered minus total winnings paid out.
- Gaming Machine Duty (GMD): A tax specific to pokie machine operators.
- Venue Fees: Charges applied to venues hosting gaming machines.
- Problem Gambling Levy: Collected to support problem gambling prevention and treatment initiatives.
Get to know – Inland Revenue – Gaming Machine Duty
Taxes for Offshore Online Casino Operators
Starting 1 July 2024, overseas operators offering online gambling services to NZ residents must pay a 12% offshore gambling duty. This is calculated on:
- Offshore gambling profits = (amounts received from NZ players) − (prizes paid to NZ players) − (any offshore bets already taxed).
Check out – Offshore Gambling Duty – New Zealand Government Budget 2023
Why it doesn’t affect players: These taxes are paid by the operators as part of their business obligations. Players are not liable for these amounts and do not need to declare their winnings as taxable income in most cases.
SkyCity Entertainment Group Tax
Even though players don’t usually pay tax on their winnings, casino operators like SkyCity Entertainment Group do pay several types of taxes and face strict rules.
Taxes Paid by SkyCity
In 2024, SkyCity reported a net loss of NZ$140.4 million, mainly because of tax changes made by the government. One big reason was a one-time tax cost of NZ$129.4 million after the government removed certain tax benefits for commercial buildings.
Other Tax Issues
SkyCity also had to settle a tax issue in Australia. They agreed to pay A$38.1 million (NZ$42 million) over how loyalty points were taxed at their Adelaide casino.
Legal Trouble in NZ
In New Zealand, the government has taken legal action against SkyCity for not following anti-money laundering laws. Some of the problems were even reported by SkyCity itself.
What This Means for Players
All of this shows that casino companies do pay taxes, even though players don’t have to pay tax on their own winnings. These rules help keep the industry fair and safe but don’t affect your tax-free winnings.
To know more about SkyCity, you can visit their site: SkyCity Entertainment Group
What About Playing Overseas?
If you’re a New Zealand resident, the tax rules of New Zealand apply—your casino winnings are not taxed as long as you’re gambling casually.
However, if you move to another country, your gambling winnings might be taxed depending on that country’s laws.
| Country | Are Winnings Taxed? | How Much? / Details |
|---|---|---|
| New Zealand | ❌ No | Winnings are not taxed unless you’re a professional gambler. |
| United States | ✅ Yes | 24% federal tax is withheld. Additional state taxes may apply, depending on the state. |
| United Kingdom | ❌ No | Gambling winnings are not taxed for players. |
| Canada | ❌ No (for casual players) | Winnings are not taxed unless gambling is your business. |
| Australia | ❌ No (for casual players) | Winnings are tax-free unless you’re a professional gambler. |
| France | ✅ Yes | Winnings from poker and other skill games may be taxed. |
| India | ✅ Yes | 30% flat tax on gambling winnings, plus surcharge and cess. |
| South Africa | ✅ Yes (in some cases) | Winnings may be taxed if gambling is considered a source of income. |
Editor’s Verdict
So, in short, casino winnings in New Zealand are generally not taxable for casual players, as they are seen as windfalls, not income. This includes online casinos, provided you’re not gambling professionally.
However, if you treat gambling as a business or rely on it as a primary income, your winnings could be taxed.
Casino operators do pay taxes, like Gaming Duty and, from July 2024, a 12% offshore gambling duty for international operators.
For regular players, this means there’s no need to worry about taxes on winnings, but professional gamblers should consult a tax advisor.