Online gambling is set for a major shakeup in early 2026, when Alberta's new iGaming market for sports betting and online casinos is launched. This might lead to gambling tax changes.
Are Gambling Winnings Taxable in Alberta?
The answer to this question varies depending on whether you're a casual player or a professional. For the vast majority of players who simply play at legal casinos in Alberta as a leisure activity there's nothing to pay.
- There's no Alberta casino winnings tax if betting is not your regular income.
- If you bet professionally then your regular income is via gambling and you're subject to income tax at the federal/provincial level.
- Professionals subject to tax must pay regardless of whether the online casino is offshore or domestic.
- There is no tax on Alberta lottery winnings as this is purely a matter of chance.
Alberta Gambling Winnings Taxes - Reporting Gambling Income in Alberta
Very few Alberta online casino players actually meet the criteria used by the Canada Revenue Agency (CRA) to decide if Alberta gambling winnings should be liable for tax. Players must be proven to play consistently and track profits. Here's the criteria that the CRA use:
- How much the player focuses on profits when gambling.
- The possession of specialised skills or information that allows them to alter the degree of luck involved in gaming.
- How often and how much the player gambles.
- Whether the player relies on their gambling income for their livelihood, as opposed to having fun and relaxing.
Withholding and Tax on Lottery or Casino Winnings
A lot of players ask are lottery winnings taxed in Canada. The good news is that there's no lottery winning tax Canada players have to play just like casino winnings, but players may be subject to withholding for wins in foreign casinos. Thanks to treaty benefits between the USA and Canada, players may be able to file for partial refunds. Tax withholding information is as follows.
- May happen if you are a Canadian resident and you gamble at an overseas casino, such as a casino in the USA.
- May occur for wins on lottery, bingo, or slots when playing offshore.
- Can be offset if US gambling losses have also been incurred.
- Can be offset if it occurred for wins on blackjack, baccarat, craps, roulette, or big-6 wheel.
Professional Gambler Obligations for Alberta Gambling Winnings Taxes
When it comes to Alberta online casino taxes the exception to the rule is that professional gamblers must pay it. Sometimes it can be a difficult call to determine between a professional and a skilled amateur. If you are wondering do you pay taxes on gambling winnings in Alberta the information below should help.
Poker and blackjack have an element of skill as well as luck, players who make significant sums on these games professionally will have to pay tax.
Daniel Negreanu would be a prime example of a professional Canadian poker player, but gambling income can also be earned by streamers or content creators such as Twitch's Xposed. Professionals must declare all winnings as income, but this also means expenses can be deducted.
Are online gambling winings taxable in Alberta? The following factors count towards activity qualifying as business gambling in Alberta:
- Significant and consistent effort on the gambler's part such as full-time gambling or gambling on a very frequent basis.
- Regularly making winnings.
- Relying on winnings for a livelihood.
- Travelling to tournaments and events.
- Having specialist knowledge or skills that reduces the element of chance in any game.
Future Taxation and Alberta's 2026 iGaming Market
The iGaming Alberta Act is set to dramatically alter the betting landscape in the province, with a regulated market due to be established in 2026. This is unlikely to affect players in terms of taxation.
Casino operators will face a similar situation to Ontario's regulated approach, where gross gaming revenue hit $3.2bn in 2024-25. Operators in Ontario have gaming tax on GGR, in addition to 15% federal corporate tax and 11.5% provincial corporate tax, or 3.2% if annual earnings are under $500,000. Because Alberta has a very low 8% corporate tax rate this will make it even more attractive to potential operators.
New casino operators in Alberta, as in Ontario, will have to comply not just with the federal but provincial tax reporting standards. This means meeting the standards of PCMLTFA and FINTRAC, in addition to those of the AGLC and the Alberta iGaming Corporation. At the moment gambling revenue generated in Alberta through Play Alberta goes into the General Revenue Fund of the province to support everyday services.
More in our Alberta Guide
To find out more about gambling in the province and Alberta casino sites and sports betting, be sure to check out more of our guides. We have information covering everything from responsible gambling to tips for new casino players. The links below are a great place to start.
