Taxes on Casino Winnings

Did you win a jackpot but don't know how much is taxable?

If you recently made some big winnings, but have no idea how much of it must be filed for taxes and how much you get to keep, you've come to the right place! Read on for everything you need to know about taxes on casino winnings.

If you have ever wondered how taxes on casino winnings in New Zealand work, we’ve compiled this informative guide for you to learn more. Let’s take a look at how this works when you play your favourite games, such as pokies, or table games like Baccarat and Poker.

Baccarat for NZ players
Baccarat is one of the most popular games among NZ players!

Do you have to pay taxes on casino winnings in New Zealand?

Players in New Zealand are exempt from paying tax on gambling winnings. The reason behind this is due to betting being considered a hobby or recreational activity rather than a profession.

NZ players don’t need to pay taxes due to a piece of legislation known as the Income Tax Act 2007. This legislation was administered by New Zealand’s Inland Revenue Department.

The Act stipulates things related to New Zealand’s gambling tax. These include what income is taxable and what income is exempt. Apart from these stipulations, the Act also covers how such income is taxed and how tax is calculated.

The Income Tax Act 2007 also covers income sources such as; dividends, investments, and employment/self-employment income. Property, pensions, and benefits are also included in this Act.

What winning amount do you have to report in New Zealand?

According to the New Zealand Government’s Work and Income Department, if you invest or save the money you have won when gambling, any interest, dividends or rent you get is counted as income if you or your partner get an income-tested payment.

Some examples of income-tested payments include benefits or NZ Super or Veterans Pension with a Non-qualified Spouse.

Let’s say you win $10,000 on the lottery, use half of the money to pay off your credit card, then put the $5,000 you have left into a high-interest bank account. In this case, you’ll have to inform the Work and Income Department about any money in interest you get from the bank account.

How and where to report your winnings in New Zealand

Should you need to report income-tested payments from money you won from gambling, you’ll need to inform the Work and Income Department about this.

For more information on how to contact the Work and Income Department, you can visit the Contact section here.

Make sure you have your client number ready when contacting this Department. You can find this number on letters from the Work and Income Department, or on your Community Services Card.

Enjoy your pokies worry-free!

In New Zealand, taxes on casino winnings are exempt from tax. Winnings can come from pokies, Live Casino, table games like Poker, Baccarat, Craps, Blackjack, or from other types of games.

In the rare cases you do have to report your winnings, you can always visit the New Zealand’s Work and Income Government Department website for more information.

Regardless of taxes, may we remind you to play responsibly. After all gambling should be a fun and enjoyable activity that you take part in as a hobby!

Responsible Gambling
Be careful you don’t let gambling affect you negatively!

Frequently asked questions

Players in New Zealand natives are exempt from paying tax on gambling winnings. The reason behind this is due to betting being considered a hobby or recreational activity rather than a profession.
According to the New Zealand Government's Work and Income Department, if you invest or save the money you have won when gambling, any interest, dividends or rent you get is counted as income if you or your partner get an income-tested payment.
Should you need to report income-tested payments from money you won from gambling, you'll need to inform the Work and Income Department about this.

Your casinos will be cleared

Are you sure?