Are gambling winnings taxed in Quebec?

The short answer

For a recreational player in Quebec, gambling winnings are generally not taxable. The Canada Revenue Agency treats them as windfalls rather than income. There are two important exceptions: professional gambling that amounts to a business, and anything you earn afterwards on the money, such as interest. Crypto adds a third layer, because moving coins in and out of a casino can be a taxable disposition.

This guide summarises official sources. It is not tax advice. If your gambling is frequent, large or systematic, or you use crypto heavily, talk to an accountant.

What the CRA says about windfalls

The CRA's technical guidance on this topic is Income Tax Folio S3-F9-C1, which covers lottery winnings, gambling and other unusual receipts. Paragraph 1.2 says an amount received as a windfall is not subject to tax, and lists factors that point to a windfall. They include that you had no enforceable claim to the payment, made no organised effort to receive it, had no reason to expect it to recur, and that it did not come from a customary source of income.

Paragraph 1.16 deals with lotteries directly. The value of a prize from a lottery scheme is not taxable as income or as a capital gain, unless the circumstances make it employment, business or property income. The CRA's page on amounts that are not taxed repeats this for lottery winnings of any amount. If your question is about an office hockey pool, our pool de hockey guide covers how to run one and where the Criminal Code draws the line.

Casino and sports winnings

Paragraph 1.12 of the folio says an individual's gambling may produce taxable business income or a business loss only if the gambling is a source of income, that is, if you are carrying on the business of gambling. It quotes the courts' view that the intention to win money is shared by everyone who gambles and does not, by itself, make gambling a business.

Paragraph 1.13 adds a line from the Tax Court in Leblanc v. The Queen: gambling, even regular, frequent and systematic gambling, is not generally regarded as a commercial activity except in very exceptional circumstances.

So the casual player who hits a jackpot on a slot, wins at blackjack or cashes a parlay does not report it as income. The same windfall logic covers prizes from Loto-Québec games such as Kinzo and bingo or the video lottery terminals in bars. Lottery draws work the same way: a Québec 49 or Quotidienne 3 prize is not taxable either.

When gambling can become a business

Paragraph 1.14 says the exceptional cases where winnings were held taxable involved people who used inside information, knowledge and skill to reduce the role of chance. Paragraph 1.15 lists the factors the CRA considers:

• how organised the activity is
• whether you have special knowledge or inside information that reduces the element of chance
• whether you gamble for pleasure or as a way of earning a living
• the extent of the activity, including the number and frequency of bets

Pure games of chance, like lotteries and slots, are hard to fit into a business test, as paragraph 1.12 notes. Skill-heavy activity, such as systematic sports betting built on an information edge, sharp poker play or matched and hedged betting run like an operation, is where the question becomes real. If gambling is a business, both winnings and losses count, and a business loss may be deductible. That cuts both ways, and it is a question of fact that depends on your whole course of conduct.

Poker is the clearest recent example. In Fournier-Giguère v. The King (2025 FCA 112, 10 June 2025), the Federal Court of Appeal dismissed the appeals of three players and upheld the Tax Court's finding that their poker earnings were taxable business income. Poker was their livelihood, they earned steady annual profits, and they tracked statistics, adjusted strategy and managed risk. The court said there is "no hard and fast rule against the taxation of gambling income". On 4 June 2026 the Supreme Court of Canada declined to review the finding, so it stands. A recreational player at Loto-Québec's online poker room is in a very different position, but anyone who plays for a living should get advice.

Interest and investment income on winnings

Winning is not taxed, but what the money earns afterwards is. The CRA's non-taxable amounts page says income earned on those amounts is taxable, and gives the example of interest from investing lottery winnings. The same logic applies to a casino windfall sitting in a savings account or invested in a portfolio.

Crypto: where tax can apply

Crypto casinos add a step that has nothing to do with the gambling itself. The CRA's information for crypto-asset users says a crypto-asset transaction is generally capital in nature unless it is made on account of business income, which depends on facts such as how regularly you trade and your intent. It also says that using cryptocurrency to pay for goods or services is a common example of a disposition.

For a Quebec player, that has practical effects:

• Buying and depositing. If you buy bitcoin, hold it while the price rises, then send it to a casino, the deposit may be a disposition of an asset that has gained value.
• Selling winnings. If you withdraw crypto and later sell it for Canadian dollars, any change in value between receiving it and selling it can be a gain or a loss.
• Stablecoins. USDT or USDC aim to track the US dollar, so gains tend to be small, but the Canadian dollar exchange rate still moves.

The gambling win itself stays a windfall in the usual case. The tax question is about the crypto as property. Keep records of what you bought, when, at what price, and each transfer in and out of a casino. If you trade often or in large amounts, the CRA may treat the activity as a business.

Four simple examples

These illustrate the CRA's approach in general terms. They are not rulings on anyone's situation.

1. A slot jackpot. You play occasionally for fun and win C$20,000 on a slot. It is a windfall from a game of chance and is not reported as income.
2. A lottery prize, invested. You win a lottery prize and put it in a savings account. The prize is not taxable; the interest it earns each year is.
3. A crypto deposit that grew. You bought bitcoin for C$1,000, it rose to C$1,500, and you sent it to a casino. Whatever happens at the tables, sending the coin may count as a disposition with a C$500 gain to consider.
4. Betting run like a business. You spend full days on organised, high-volume betting built on an information edge, and it is your main source of income. That is the kind of case where the CRA's business factors in paragraph 1.15 come into play.

Quebec and Revenu Québec

Quebec residents file two income tax returns: a federal return with the CRA and a provincial one with Revenu Québec. The CRA folio describes federal law. Revenu Québec's own page on taxable and non-taxable income lists lottery winnings as non-taxable and says income earned on non-taxable amounts, such as interest on lottery winnings, is taxable. It does not mention casino or betting winnings separately, so confirm with Revenu Québec or an accountant if a large win or a crypto gain is involved.

Winnings from foreign sites

Most private casinos that accept Quebec players are based outside Canada. The CRA's windfall analysis does not depend on where the casino is licensed. Some foreign jurisdictions can withhold tax on certain gambling winnings paid to non-residents, which is a separate question from Canadian tax. If a foreign operator withholds tax from a large win, get advice before you file.

Records worth keeping

Even if your winnings are not taxable, records help if anyone asks where money came from, including your bank:

• casino account statements and withdrawal confirmations
• crypto wallet addresses, transaction hashes and the price at the time of each transfer
• bank statements that show Interac deposits and withdrawals

Banks and casinos both run anti-money-laundering checks. A clear paper trail makes a large deposit to your bank account easier to explain.

Summary

For most Quebec players, winning at a casino is not a taxable event. Professional gambling can be business income, interest on winnings is taxable, and crypto transactions around your play can create capital gains or losses. When in doubt, ask a tax professional and keep good records.

Sources

• https://www.canada.ca/en/revenue-agency/services/tax/technical-information/income-tax/income-tax-folios-index/series-3-property-investments-savings-plans/series-3-property-investments-savings-plans-folio-9-miscellaneous-payments-receipts/income-tax-folio-s3-f9-c1-lottery-winnings-miscellaneous-receipts-income-losses-crime.html
• https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/amounts-that-taxed.html
• https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html
• https://www.revenuquebec.ca/en/citizens/your-situation/new-residents/the-quebec-tax-system/taxable-and-non-taxable-income/
• https://decisions.fca-caf.gc.ca/fca-caf/decisions/en/521637/1/document.do
• https://www.ctvnews.ca/canada/article/supreme-court-of-canada-deals-blow-to-poker-players-who-challenged-tax-ruling/