In Canada, recreational gamblers can consider their winnings from games of chance as non-taxable “windfalls” or unexpected gains. The Canada Revenue Agency (CRA) generally does not view gambling as a taxable activity or a business unless you are actively and professionally earning income from it.

For casual players, this means:

• Winnings are not taxed.
• Gambling is seen as entertainment, not a source of income.

However, for professional or semi-professional gamblers, the situation can be different:

• If you earn a living through gambling using skill, strategy, or structured betting systems, you might be considered self-employed.
• In such cases, your earnings could be subject to taxation, as the CRA may view it as business income.

That said, courts have historically been cautious about taxing gambling winnings, even when the activity resembles a business. For example, the Leblanc brothers, who earned around $650,000 annually through structured sports betting, were ruled to have non-taxable winnings because luck played a significant role, despite their business-like approach.

Overall, while provincial regulations vary, the federal stance is clear: