Australia has the most number of legal gamblers and poker players in the world, which is likely the result of tax-free winnings among residents of the country. Instead, the government is taxing the gambling operators within their jurisdiction. The exception is if you are considered a professional poker player (where poker income is your living) then you are required to report the winnings alongside your income and pay annual tax. There is no tax withheld by casinos or by poker rooms when you receive your payouts.