Unlike many countries with federal gambling taxes, Australia’s gambling tax regime is administered by states and territories. Each jurisdiction sets its own rates, rules, and collection mechanisms for wagering, pokies, casinos, and lotteries.
In 2026, the landscape remains fragmented despite ongoing calls for harmonization. This guide outlines the latest Australian gambling tax rules for 2026, providing official sources and a clear state‑by‑state breakdown.
Sources for this guide:
- State and territory government revenue offices
- Australian Tax Office (ATO) guidelines
- Victorian Gambling and Casino Control Commission (VGCCC)
- NSW Independent Liquor & Gaming Authority (ILGA)
- Queensland Office of Liquor and Gaming Regulation (OLGR)
How Gambling Is Taxed in Australia – Federal vs State
The Australian Constitution gives states primary responsibility for gambling regulation and taxation. In contrast, the federal government’s role is limited to:
- Prohibiting unlicensed online casinos under the Interactive Gambling Act (IGA) 2001
- Taxing gambling winnings? – No, gambling winnings are generally not taxed as income in Australia (with limited exceptions for professional gamblers)
- Anti-money laundering oversight (AUSTRAC)
Key principle: Gambling taxes are levied on operators, based on their revenue or wagers. As a result, individual punters’ winnings are not taxed.
Wagering Tax – Point of Consumption Tax (POCT) by State
The Point of Consumption Tax (POCT) applies to wagering operators (sports betting, horse racing, greyhounds). It is calculated based on the gross revenue from bets placed by residents of that state, regardless of where the operator is based.
| State/Territory | POCT Rate | Year Implemented | Official Source |
|---|---|---|---|
| South Australia | 15% | 2019 | RevenueSA |
| Victoria | 10% | 2019 | SRO Victoria |
| New South Wales | 10% | 2020 | Revenue NSW |
| Queensland | 15% | 2021 | Queensland Revenue |
| Western Australia | 15% | 2024 | WA Treasury |
| Australian Capital Territory | 10% | 2021 | ACT Revenue |
| Tasmania | 10% | 2022 | SRO Tasmania |
Key fact: Many online betting operators are licensed in the Northern Territory due to historically lower regulatory costs, but they must pay POCT in the state where each bettor resides.
Pokies and Casino Tax Rates by State
Land-based pokies (slot machines) are taxed at rates that vary significantly by state and by the venue type (clubs vs pubs vs casinos). Taxes are generally calculated as a percentage of Net Machine Revenue (NMR) – total bets minus payouts.
Casino tax rates apply to gross gaming revenue from table games, pokies, and other casino products. In practice, these taxes are not always uniform across operators; instead, many jurisdictions use a tiered structure. As revenue increases, the applicable tax rate rises accordingly, ensuring that higher‑earning operators contribute proportionally more. This approach is designed to balance industry growth with public revenue needs, while also recognising the differing capacities of small and large operators.
Pokies tax highlights by state (2026):
| State | Casino Operator | GGR Tax Rate | Regulator |
|---|---|---|---|
| New South Wales | The Star Sydney | 30% | ILGA NSW |
| Victoria | Crown Melbourne | 10.9% – 45.6% (tiered) | VGCCC |
| Queensland | The Star Gold Coast / Treasury | 20% | OLGR QLD |
| Western Australia | Crown Perth | 20% | WA Gaming |
| South Australia | SkyCity Adelaide | 25% | CBS SA |
| Tasmania | Wrest Point / Country Club | 20% | Treasury TAS |
The Offshore Loophole – Why Online Casinos Pay No Australian Tax
A significant gap in Australia’s gambling tax regime is the treatment of offshore online casinos. Because Australian-based online casinos are prohibited under the IGA, there are no licensed domestic operators to tax.
The situation in 2026:
- Australian-based online casinos = not legal, therefore pay zero Australian gambling tax
- Offshore operators (Curacao, Malta, Gibraltar) = accessible to Australians but pay zero Australian tax
- The estimated annual tax loss to Australian governments is projected at $500 million to $1 billion. This estimate is not arbitrary; rather, it flows directly from the size of the online casino market. With the market valued at approximately $3.9 billion, applying a notional POCT‑equivalent rate of 10–15% produces the projected revenue gap. In other words, the tax loss figure reflects what governments would collect if online casino activity were taxed at rates comparable to those ofother wagering products.
Calls for reform:
- The Parliamentary Joint Committee on Gambling Reform recommended in 2025 that the federal government explore options to tax offshore operators, including:
- ISP blocking of non-compliant sites
- Payment processor restrictions
- Licensing regime for “approved” offshore operators
As of March 2026, no federal action has been taken.
Conclusion
Australia’s gambling tax rules remain complex and fragmented in 2026, with each state setting its own rates. As a result, wagering is taxed at 10–15% POCT, pokies can reach up to 50%, and casino taxes range from 10–45% on a tiered basis. As a result, the offshore online casino loophole continues to cost governments an estimated $500 million to $1 billion annually in uncollected revenue.
Calls for federal harmonization and taxation of offshore operators have intensified, but no major reforms have been implemented as of March 2026.
Sources:
- Australian Tax Office (ATO) – Gambling and taxation guidelines
- State revenue offices (NSW, VIC, QLD, WA, SA, TAS, ACT, NT)
- Victorian Gambling and Casino Control Commission (VGCCC)
- Parliamentary Joint Committee on Gambling Reform reports
- Queensland Government Statistician’s Office (QGSO)
How Are Gambling Winnings Taxed in Australia?
Q1: Do I have to pay tax on gambling winnings in Australia? ▼
Generally, no. The ATO does not tax gambling winnings from betting, lotteries, or casinos because gambling is not considered an income-generating activity for most individuals. [ATO Source]
Q2: What is the Point of Consumption Tax (POCT)? ▼
POCT is a state tax on wagering operators (sports betting, racing) calculated on the gross revenue from bets placed by residents of that state, regardless of where the operator is based. Rates range from 10-15% across states.
Q3: Are online casinos taxed in Australia? ▼
No. Australian-based online casinos are illegal under the IGA, so no licensed operators exist to tax. Offshore casinos accessible to Australians pay no Australian tax, resulting in an estimated $500M-$1B annual tax loss.
Q4: What tax do TAB and Sportsbet pay? ▼
Licensed wagering operators like TAB and Sportsbet pay Point of Consumption Tax (POCT) in each state where their customers reside, ranging from 10-15% of gross revenue from bets placed in that state.
Q5: Are there any exceptions to the “gambling winnings are tax-free” rule? ▼
Yes. If you are considered a professional gambler (gambling as a business, not a hobby), your winnings may be taxable as income. The ATO considers frequency, volume, and systems used. [ATO Source]
