How to Use Casino Winnings for Betting: Tax, Withdrawals and Moving Funds

Casino winnings are not taxable income in Australia for recreational players. But getting that money out of a casino account and into a sportsbook involves several steps - withdrawals, banking, and deposit methods that do not always connect directly. This guide covers each one.

Aiden Rawlings
7 minute read
Covers AU tax rules

1 Are Casino Winnings Taxable in Australia?

For those who gamble for fun, the winnings from the casinos are not considered taxable income. Whether the winnings are from a physical or online casino, they are not taxed.

The Australian Taxation Office (ATO) only considers these winnings as assessable income if gambling is the primary business of the individual. The majority of people who play casino games for fun do not fall into this category.

The losses from gambling are not deductible against other forms of income for those who play for fun at the casinos. The non-taxable nature of casino game winnings works both ways.

ATO confirmed: "You do not need to declare your gambling winnings as income. You will only need to declare your gambling winnings or losses as income if you are a professional gambler carrying out a business of betting or gambling." - ATO Community, 2021.

If you are unsure if your gambling activities fall into the category of a professional gambler, it is advisable to consult with a registered tax agent. For the majority of people who play casino games for fun, however, casino winnings are not taxable.

2 Banking Large Casino Wins

Some people wonder about the implications of depositing their casino winnings into a bank account. There is no issue with this practice - both online and in person deposits will be made in a way that is legal and does not create problems for those who have won at the casinos.

Electronic transfers

When a player receives their winnings from a casino through an EFT or bank transfer, those funds will be credited to the player's bank account with the name of the casino included in the transfer. The bank can view the origin of the funds.

Cash deposits and AUSTRAC

In accordance with the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, banks and casinos are legally required to report any cash transactions of $10,000 AUD or more to the Australian Transaction Reports and Analysis Centre (AUSTRAC). This reporting is done by the bank or casino, and the player does not have to submit any reports or forms to comply with this legislation.

Structuring is a criminal offence. Deliberately breaking a large cash amount into multiple smaller deposits to stay below the $10,000 reporting threshold - known as structuring - is illegal under Australian law regardless of the source of the funds. Do not do this. A large deposit from a legitimate casino win raises no issues; attempting to hide it does.

What actually happens with reported transactions

This reporting to AUSTRAC is performed as part of law enforcement efforts to investigate money laundering and other forms of financial crime. Winnings from a legitimate casino game will not be investigated by AUSTRAC. The majority of casino players who win large amounts of money at the casinos will never hear from AUSTRAC.

3 How Casinos Pay Out Winnings

Casino payouts are made in a variety of methods depending upon the amount of money that is won by the player and whether the casino is a physical or online facility.

Physical casinos

For players who win smaller amounts of money at table games or pokies (slot machines), the winnings will be paid in cash or casino chips. However, if a player wins a large amount of money at a casino, the winnings will be paid in a cheque or electronic funds transfer.

Physical casinos process jackpot wins above $10,000 through the casino cage area rather than at the machine or table. For players who win a large amount of money at a physical casino, it is possible to ask the casino's cage to arrange for the winnings to be paid to a bank account via EFT. Most physical casinos in Australia will accommodate such requests.

Online casinos

Online casinos pay out winnings to players that have won a prize, but the prize remains in the online casino's account balance. To access these winnings, a request to withdraw funds from the online casino is made. The method of withdrawing funds will depend upon the online casino's policies. Most online casinos permit the winning funds to be withdrawn via cryptocurrency, e-wallet services, or bank transfer methods for international online casinos.

In order to withdraw funds from an online casino account, the account holder must verify their identity to the online casino. Most online casinos require an initial withdrawal request to be accompanied by a photo of the player's Government-issued photo ID and proof of address. Subsequent withdrawals from an online account will not require re-verification of identity.

4 Withdrawing from an Online Casino Account

There are a variety of steps involved in gaining access to casino winnings from an online casino. Knowing each of these steps allows the player to better plan their actions following their casino win.

  1. Log in to the casino account and navigate to the cashier or wallet section. Select the withdrawal option.
  2. Choose a withdrawal method. Cryptocurrency is the fastest - most platforms process crypto withdrawals within minutes to a few hours. E-wallets (Skrill, Neteller) typically take 1-2 business days. Bank transfer takes 3-5 business days.
  3. Enter the destination address or account details. For crypto, paste your personal wallet address exactly - cryptocurrency transactions cannot be reversed. For bank transfer, enter your BSB and account number.
  4. Submit the withdrawal. The casino reviews the request - first withdrawals require KYC verification, which can add 24-48 hours. Subsequent withdrawals from a verified account are typically faster.
  5. Receive the funds in your bank account or wallet. Bank transfers from international platforms may take longer than domestic transfers due to correspondent banking processes.
Withdrawal matching: Many casinos require withdrawals to be made to the same method used for the deposit. If you deposited by bank transfer, you may only be able to withdraw by bank transfer. If you deposited by crypto, withdrawal goes back to a crypto wallet. Check this before depositing if your withdrawal preference differs from your deposit method.

Common withdrawal delays

A withdrawal request made at an online casino will be in the "pending" state for a certain period of time, which is usually between 24 and 48 hours. During this period, the online casino reviews the requested withdrawal. After the review is complete, the funds will be released into the player's bank account or cryptocurrency wallet. If a requested withdrawal has been pending for more than 72 hours, the player should contact the online casino's customer support department to inquire as to the reason for the pending withdrawal.

Online Casino Withdrawal Methods and Typical Timeframes

Method Typical processing Reversible? Notes
Cryptocurrency Minutes to 2 hours No Fastest option; requires a personal crypto wallet
E-wallet (Skrill, Neteller) 1-2 business days No Accepted by most international casinos; then transfer to bank
Bank transfer (EFT) 3-5 business days No Direct to your account; labeled with casino name on statement
Cheque (physical casino) Same day or mailed Yes (stop payment) Used for large wins at land-based casinos

5 Moving Casino Winnings into a Sportsbook Account

There is no direct way to transfer funds from an online casino to an account at a sportsbook. The winnings will have to first be deposited into a bank account or crypto wallet. Once the funds are in that wallet, they can be deposited into a sportsbook.

  1. Withdraw from the casino to your bank account or crypto wallet, following the steps in Section 4.
  2. Wait for the funds to arrive. Bank transfers take 3-5 business days; crypto arrives much faster.
  3. Log in to your sportsbook account and go to the deposit section.
  4. Select a deposit method. Licensed Australian sportsbooks commonly accept POLi (instant direct bank transfer), BPAY, debit card, and bank transfer. Some accept crypto directly.
  5. Enter the deposit amount and confirm. POLi and crypto deposits are usually credited instantly. Debit card and bank transfer deposits may take a few hours.

Credit cards and Australian sportsbooks

Most Australian banks will not allow credit card transactions to be made into gambling websites. Most sports betting websites do not take credit cards for deposits either. Instead, a debit card can be used to deposit funds into a sportsbook, or the POLi method of transferring funds from a player's bank account to a sportsbook. Should a player win at an online casino and have the winnings deposited into their bank account, those funds can be immediately used to deposit into a sportsbook using either the POLi method or a debit card.

Crypto as a bridge

If both the online casino and sportsbook accept cryptocurrency, the winnings from the online casino can be transferred to a player's cryptocurrency wallet. The funds in that wallet can then be directly deposited into the sportsbook that accepts cryptocurrency deposits. Such direct cryptocurrency transfers occur at the speed of the blockchain technology - typically in a matter of minutes rather than days.

6 Turning Casino Bonus Winnings into Real Money for Betting

One of the most commonly searched questions regarding online casinos is: how can bonus money from a casino be converted into real money?

In order to withdraw bonus money from an online casino, the player must first meet the wagering requirements of the bonus. The bonus money cannot be withdrawn from the online casino until the player has met the wagering requirement. Attempting to make a withdrawal of bonus money before fulfilling the wagering requirements will result in the forfeiture of the bonus money and winnings. Once the wagering is fulfilled, the bonus money will convert to real money that can be withdrawn from the online casino account.

The conversion process

  1. Check your current wagering progress in the account or promotions section. Most casinos display a tracker showing how much of the requirement has been completed.
  2. Continue playing eligible games (slots contribute 100%; table games contribute less - typically 10-20%) until the full wagering requirement is met.
  3. Once complete, the bonus funds convert to your withdrawable balance. You will usually see a notification or a change in balance status.
  4. Request a withdrawal using your preferred method (see Section 4). The funds are now real money - no different from any other casino balance.
  5. Once the withdrawal arrives in your bank or crypto wallet, deposit into the sportsbook account following Section 5.
Non-sticky vs sticky bonuses: With a non-sticky bonus, your deposit and bonus winnings are both withdrawable after wagering is complete. With a sticky bonus, only winnings above your original deposit are cashable - the bonus amount itself is never paid out. Check which type applies before treating your full balance as withdrawable.

Realistic expectations

Most online casino bonuses require players to wager the balance of the bonus 30 or 50 times before the winnings can be withdrawn. During this period of wagering, the player will inevitably lose money to the casino's wagering requirement. In most cases, the amount of money that is lost while fulfilling the casino bonus wagering will exceed the amount of the bonus award. Bonuses that require a lower wagering requirement of 10 times or less are more likely to leave the player with a surplus of funds that can be withdrawn from the online casino account. Alternatively, the easiest way to receive funds from the online casino for sports betting is to claim a free bet from the sportsbook at the online casino.

7 Using Casino Winnings as a Sports Betting Bankroll

If you have successfully withdrawn casino winnings and want to use them for sports betting, treating the funds as a dedicated betting bank - separate from your regular finances - is the most practical approach.

Set a dedicated bankroll

Make a decision prior to beginning to play at a casino into how much of the winnings will go into a betting bank account. Once the funds in that betting account reach 0, it is time to cease betting activities. Do not begin to contribute additional funds to the betting account from other sources of income. This is the most common reason that casino winnings disappear.

Flat staking

Placing bets that are a percentage of the total bankroll ensures that no more than a portion of your total bankroll is at risk. Placing bets at a flat 1-2% of the total bankroll means that a losing streak will not wipe out your bankroll quickly. For instance, if the total bankroll is $500, each bet will cost $10. The total bankroll will adjust automatically with the number of bets placed and won.

Record every bet

Maintain a record of each bet including the date placed, the sport, the event, the selection, the odds of winning, the stake amount for each bet, and the result of the bet. Maintaining such a record will allow gamblers to view their betting results over time. A record is essential to understand the return rate of each gambler's bets. A spreadsheet that includes the above six headings will be sufficient for each gambler.

One rule above all: Only ever bet with money you have already set aside for this purpose. Casino winnings that have been earmarked for living costs, bills, or savings should not enter the betting bank. Separate the money before depositing it into the sportsbook.

Frequently Asked Questions

Are casino winnings taxable in Australia?

No. Casino winnings are not taxed in Australia. The winnings from gambling establishments do not have to be reported to the Australian Tax Office (ATO). The exception to this rule is when the winnings are from one's primary business activity. In this case, the ATO may consider the winnings as business income. The ATO has made it clear through different communication channels that winnings from recreational gambling are outside the taxation system. Gambling losses are also not deductible against other income.

Do I need to tell my bank about casino winnings?

There is no need to notify the bank of casino winnings. The funds will be automatically transferred to the gambler's bank account via electronic transfer, with the casino's name visible as the sender on the statement. If the winning amount includes cash and is above $10,000 AUD, the casino is required to report this to AUSTRAC. However, there is no need for the gambler to complete such a transaction themselves. Winning funds from a casino are not a legal or banking problem for the gambler.

What is the AUSTRAC $10,000 cash reporting threshold?

Under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, licensed gambling operators and financial institutions in Australia are required to report cash transactions of $10,000 AUD or more to AUSTRAC. This is done automatically by the institution. It is a criminal offence to attempt to circumvent this regulation through the making of multiple smaller cash transactions. Such an offence would be independent of the source of such cash.

How long does an online casino withdrawal take?

Cryptocurrency withdrawals from online casinos take place within minutes to a few hours. E-wallet withdrawals generally take 1 to 2 business days. Bank transfers take between 3 and 5 business days. The first few withdrawals may take longer as the casino takes some time to verify the gambler's identity. Once this is done, the winnings can be transferred. So, the first few withdrawals may take 24 to 48 additional hours.

Can I deposit casino winnings directly into a sportsbook?

Casino winnings must first be withdrawn before they can be deposited into a sportsbook account. Most licensed sportsbooks in Australia take POLi, BPAY, debit cards, and bank transfers. Some also take cryptocurrency deposits. Credit cards are not generally accepted by sportsbooks in Australia.

How do I turn casino bonus winnings into real money for betting?

The bonus money has specific wagering requirements that must be fulfilled before it can be withdrawn as real money. Once the player has wagered the required amount, the bonus will be converted into the player's withdrawable balance at the casino. Request a withdrawal to your bank account or cryptocurrency wallet. Once the funds arrive, deposit them into your sportsbook of choice.

Aiden Rawlings

Written by

Aiden Rawlings

Aiden is the founder of the website that covers the best crypto casinos for Australian players. He has researched the 30+ casinos on this site to compare their processes for signing up, depositing and withdrawing winnings from their accounts. His goal is to provide Australian players with a clear picture of all the documentation that is required of them during the process - and at what times - in order to make their experience with these casinos as enjoyable as possible.

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Responsible Gambling

Using the winnings from a casino for betting activities puts the gambler's money at risk. The winnings are not guaranteed until they are withdrawn from the casino. It is advisable to place a limit on the amount of winnings that are placed into a betting bank. The rest of the winnings should be withdrawn to avoid any risk of losing the winnings from the casino.

If gambling is affecting your wellbeing or that of someone you know, free and confidential help is available.

Gambling Help Online (AU) BetStop - National Self-Exclusion Register GambleAware