Private ruling: Gambling winnings
Date of advice: 13 May 2019
Published: June 2019
Ruling period: Year ended 30 June 2017 | Year ended 30 June 2018 | Year ending 30 June 2019
Date scheme commenced: 1 July 2016

Ruling: Q1: Are your winnings from casino poker games and tournaments assessable income under section 6-5 of the Income Tax Assessment Act 1997 (ITAA 1997)? | A1: No. Having considered your circumstances and the relevant business indicators contained in Taxation Ruling 97/11 Income tax: am I carrying on a business of primary production? , the Commissioner does not consider you to be carrying on a business of gambling. Therefore, your winnings from your gambling activities are not assessable under section 6-5 of the ITAA 1997 and the relevant losses and expenses will not be deductible under section 8-1 of the ITAA 1997

Relevant facts and circumstances: You work on a full time basis. You participate in casino poker cash games and tournaments. You enjoy playing poker and find that it provides relief and distraction from your day job. Your game strategies are guided by your instinct on the bet sizing and player reads. You have accumulated winnings over $100,000 since you started. You attend to a number of poker tournaments each month. You usually bet an average of $200 to $300 in each tournament. You have placed bets of $10,000 in some tournaments. Your estimated monthly losses are over $1,000. You have not drawn any credit account or loans to fund your poker activities. The Casino keeps a record of your winnings but not your losses. You do not maintain a record of your losses. You have no budget or forward planning in relation to your gambling activities. Last year, you purchased an online course to study poker. You have subscribed to an online poker video training for the past few months.

Relevant legislative provisions: Income Tax Assessment Act 1997 section 6-5 | Income Tax Assessment Act 1997 section 8-1