In most cases, casual gamblers in Canada do not have to pay tax on their winnings — whether it’s from a traditional online casino or a crypto casino.
But there are some exceptions...
If you:
Gamble as a primary source of income
Spend significant time playing
Treat gambling as a business
...then the CRA may consider you a professional gambler, and your winnings could be taxable as income.
➡️ This applies regardless of whether you’re playing with CAD or crypto.
Yes — crypto is treated as a commodity (not currency) under Canadian tax law. That means:
Every time you trade, convert, or spend crypto, it may trigger a taxable event
Gambling with crypto can lead to capital gains or losses in addition to gambling winnings
You deposit 0.01 BTC when it’s worth $400 CAD
Later, you withdraw 0.015 BTC when it’s worth $900 CAD
Even if that’s casino profit, the increase in crypto value can count as a capital gain
Capital gains/losses on crypto used for gambling
Business income if gambling professionally
Any airdrops, bonuses, or affiliate commissions paid in crypto
Occasional small winnings from personal gambling
Winnings in CAD from licensed Canadian casinos
📌 Keep records! Track the price of crypto when deposited, withdrawn, or converted.
Use a crypto tracking tool (like Koinly or CoinTracker) to log transactions
Save screenshots or confirmations from your casino wallet
Consult a crypto-friendly Canadian tax advisor
File using a T2125 if gambling is a business, or Schedule 3 for capital gains
| Situation | Taxed? |
|---|---|
| Playing occasionally for fun | ❌ Usually not |
| Gambling as a business | ✅ Yes, as income |
| Crypto goes up in value while you play | ✅ Yes, capital gains |
| You lose crypto in the casino | ✅ May claim capital loss |
What if I only gamble with stablecoins like USDT?
There’s usually no capital gain/loss if USDT stays at $1, but casino profit could still be taxable if you’re a pro player.
Do I need to report if I win and immediately cash out?
Yes — especially if the crypto changed in value between deposit and withdrawal.
Is using offshore crypto casinos illegal in Canada?
No — it’s not illegal, but it's your responsibility to report winnings correctly.
How will CRA even know I’m gambling with crypto?
They’re getting better at tracking crypto wallets. KYC checks, wallet surveillance, and exchange cooperation all make it traceable.
Even if you're just playing for fun, it’s smart to track everything and be ready to explain your crypto activity to the CRA.
