The article highlights the rapid growth of gambling in Australia, with about 70% of Australians engaging in gambling activities, driven largely by the convenience of online casinos and sports betting. Despite this surge, Australia maintains a unique tax stance: casino winnings are generally tax-free for recreational gamblers because the Australian Taxation Office (ATO) views gambling as a game of chance rather than a consistent income source. However, professional gamblers—those who treat gambling as a business with regularity, systems, and primary income—are subject to taxation on their winnings.

The regulatory framework in Australia involves state and territory governments overseeing casino operations and taxing casino revenues, while the federal government focuses on interactive gambling and anti-money laundering. The article also dispels common myths, clarifying that casual gamblers do not pay tax on winnings, losses cannot be claimed as deductions, and foreign gambling winnings may be taxed depending on the jurisdiction. Overall, understanding these distinctions is crucial for Australians to navigate gambling responsibly and comply with tax laws.