Cluster guide · 6 min read
Crypto gambling taxes: the basics
This is an overview, not legal or tax advice. Speak to a qualified accountant in your jurisdiction.
Crypto gambling tax sits at the messy intersection of two things tax authorities still disagree on: how to tax gambling winnings, and how to tax cryptocurrency. The result depends entirely on where you live — and getting it wrong can be more expensive than the losses themselves.
United States
The IRS treats every winning bet as ordinary income at fair-market value on the day you won. Separately, every time you dispose of crypto (including playing it on a casino) can be a capital-gains event measured against your cost basis. Losses are only deductible against gambling winnings (not other income) and only if you itemise. Keep a per-deposit cost-basis log.
United Kingdom
HMRC generally treats casino winnings as tax-free for amateur players. The catch: if you sell or spend the crypto you won, you may trigger a CGT event on any price movement between when you received the winnings and when you disposed of them.
European Union
Country-by-country. Germany is broadly tax-free for amateur winnings (and tax-free on crypto held over a year). France treats casino winnings as tax-free but taxes the crypto capital gain on disposal. Netherlands and Spain tax gambling winnings as income. Always check national rules.
Canada & Australia
Canada and Australia generally treat amateur gambling winnings as tax-free. Crypto disposals are still capital-gains events on either side.
Records to keep
- • Date, amount and USD/EUR/GBP value of every deposit.
- • Date, amount and value of every withdrawal.
- • Net session result (where the operator provides one).
- • Wallet addresses used (helps reconcile on-chain history).
- • Cost basis of the crypto you deposited (from your exchange's tax report).
Tools that help
Koinly, CoinTracker and CryptoTaxCalculator can ingest casino on-chain deposits/withdrawals alongside exchange data and produce per-disposal reports. Most accountants in crypto-friendly jurisdictions accept their output as a starting point.