New Zealand Gambling Tax: Complete Guide for Bettors (2026)

Tax-Free Winnings for Recreational Gamblers

New Zealand does not tax gambling winnings for recreational players. If you're betting casually on the TAB, buying Lotto tickets, or visiting a local casino, your winnings are yours to keep.

The Inland Revenue Department (IRD) treats gambling winnings as non-taxable income for most Kiwis.

This applies to:

• TAB sports betting and racing
• Lotto, Powerball, Strike, and Keno
• Casino winnings (SkyCity, etc.)
• Pokies at pubs and clubs
• Instant Kiwi scratch cards
• Online gambling with licensed operators

Why NZ Doesn't Tax Gamblers

New Zealand's approach is based on the principle that gambling outcomes are primarily determined by chance rather than systematic effort. The IRD views gambling winnings as "windfall" gains, not income from a business or employment.

The tax burden instead falls on gambling operators through various levies and contributions to problem gambling services.

This makes New Zealand similar to the UK, Australia, and Canada in its treatment of recreational gamblers.

The Gambling Landscape in New Zealand

New Zealand has a unique gambling environment:

TAB NZ (Totalisator Agency Board): The only licensed sports betting and racing operator in New Zealand. TAB holds a monopoly on sports betting, meaning no international bookmakers are licensed to operate.

Lotto NZ: Operates all lottery products including Lotto, Powerball, Strike, Keno, Bullseye, and Instant Kiwi.

Casinos: Six licensed casinos, with SkyCity Auckland being the largest. All operate under strict licensing.

Pokies: Gaming machines in pubs and clubs, regulated by the Department of Internal Affairs.

Online gambling: New Zealand hasn't licensed any offshore operators, but using overseas sites isn't explicitly illegal for players (more on this below).

When Gambling May Be Taxable

Like Australia and Canada, New Zealand distinguishes between recreational and professional gambling:

Recreational gambling:

• Tax-free
• No reporting required
• No records needed for tax purposes

Professional gambling:

• May be taxable as business income
• Subject to income tax
• Losses may be deductible

The IRD considers these factors when assessing whether gambling is professional:

• Is gambling your primary occupation?
• Do you operate in a business-like manner?
• Do you have systematic methods and strategies?
• Is there a reasonable expectation of profit?
• Do you keep detailed business records?

Most Kiwis won't meet these thresholds. But if you're gambling full-time as a profession, consult a tax advisor.

TAB Betting: Tax Treatment

TAB NZ is where most New Zealand sports bettors place their wagers. All winnings from TAB are tax-free for recreational players.

The TAB itself pays:

• Problem Gambling Levy
• Racing industry funding contributions
• GST on certain services

None of these taxes pass through to individual player winnings.

Note: TAB odds are generally less competitive than international bookmakers because of the monopoly structure and operator obligations. This isn't a tax on players, but it does reduce potential returns compared to other markets.

Lotto and Lottery: Completely Tax-Free

All Lotto NZ winnings are tax-free, regardless of amount.

If you win $10 million in Powerball, you receive $10 million. No withholding, no reporting, no tax.

This includes:

• Lotto
• Powerball
• Strike
• Keno
• Bullseye
• Instant Kiwi (scratch cards)

Lottery prizes are always recreational, so the professional gambler question doesn't arise.

Casino Gambling

Winnings from New Zealand's six casinos are tax-free for players.

Whether you're playing pokies, table games, or poker at SkyCity Auckland or Christchurch Casino, your winnings aren't taxed.

The casinos pay substantial fees:

• License fees
• Problem gambling levies
• Local government contributions

But these don't affect player winnings.

Online Gambling and Offshore Sites

New Zealand's online gambling situation is legally complex:

The current state:

• No offshore gambling operators are licensed in NZ
• Using offshore sites isn't explicitly illegal for players
• The Gambling Act 2003 restricts operators, not players
• Many Kiwis use international sites like Bet365, Sportsbet, etc.

Tax implications: Winnings from offshore gambling would still be tax-free for recreational players under general NZ tax principles. The IRD doesn't distinguish based on where you gamble.

Risks:

• No regulatory protection if disputes arise
• Some payment methods may be difficult
• The legal status could change

A gambling law reform is periodically discussed but hasn't been enacted.

Poker in New Zealand

Poker exists in a limited capacity:

Live poker: SkyCity Auckland and some other venues offer poker tournaments and cash games.

Online poker: No licensed NZ poker sites. Kiwis who play online use overseas platforms.

Tax treatment: Recreational poker winnings are tax-free. Professional poker players could potentially face taxation if it's their business.

Professional Gamblers: Detailed Guidance

If gambling is genuinely your profession, here's what to expect:

Signs you might be professional:

• Gambling is your full-time occupation
• You have no other significant income
• You use sophisticated systems and analysis
• You keep detailed records like a business
• You have a consistent track record of profits

Tax consequences:

• Gambling income treated as business income
• Subject to normal income tax rates (up to 39%)
• GST may apply if turnover exceeds thresholds
• Must file tax returns declaring gambling income
• Losses and expenses may be deductible

What to do: If you think you might be professional, consult an NZ tax accountant. The line isn't always clear, and getting it wrong can lead to back taxes and penalties.

Interest and Investment Income

Like everywhere else, interest and investment returns on gambling winnings are taxable.

Win $100,000 at SkyCity and invest it? The $100,000 is tax-free, but dividends, interest, and capital gains follow normal NZ tax rules.

New Zealand doesn't have a comprehensive capital gains tax, but interest and dividends are taxable income.

Foreign Gambling Winnings

NZ tax residents are taxed on worldwide income. However, the recreational gambling exemption applies globally.

Gambling in Australia: Tax-free in both countries for recreational players.

Gambling in the US: American casinos withhold 30% from NZ winners' prizes above certain thresholds. NZ has a tax treaty with the US that may allow recovery. The underlying winnings are tax-free in NZ.

Gambling in the UK: Tax-free on both sides.

Reporting Requirements

Recreational gamblers:

• No IRD reporting required
• Gambling doesn't appear on your tax return
• Keep personal records for your own tracking

Professional gamblers:

• Must include gambling income in IR3 return
• Keep comprehensive records
• May need to register for GST
• Should work with a tax professional

Anti-Money Laundering

Large gambling transactions may trigger AML reporting requirements:

• Casinos report suspicious transactions
• Large deposits/withdrawals flagged
• Identity verification required

This isn't taxation but compliance. Having documentation of legitimate gambling wins helps if banks or authorities inquire about fund sources.

Common Questions

Do I pay tax on TAB winnings?

No. TAB winnings are tax-free for recreational punters.

What about Lotto winnings?

Completely tax-free, regardless of amount.

Can I use offshore bookmakers?

It's not explicitly illegal for players, but there's no consumer protection. Winnings would still be tax-free.

What if I win regularly?

Frequency alone doesn't make you professional. The IRD looks at the overall picture including intent, methods, and business-like conduct.

Do I need to declare gambling to the IRD?

Recreational gamblers: No. Professional gamblers: Yes.

Comparison to Other Countries

New Zealand's approach aligns with Australia and Canada, making a distinction based on the nature of your gambling activity.

Key Takeaways

• Recreational gambling winnings are completely tax-free in New Zealand
• This applies to TAB betting, Lotto, casinos, and pokies
• Professional gamblers may owe income tax if gambling is their business
• Lottery winnings are always tax-free regardless of amount
• Offshore gambling isn't illegal for players but lacks protection
• No IRD reporting required for recreational gamblers
• The professional gambler threshold considers intent, methods, and business conduct
• When in doubt, consult a tax professional

Sources:

• Inland Revenue Department - Income
• Department of Internal Affairs - Gambling
• TAB NZ