Are gambling winnings taxable in NZ? Inland Revenue (IRD) says that, generally, winnings from a raffle, Lotto or a prize draw are not taxable, and neither is prize money from a race through the TAB. The same page does not name online casinos. This guide shows what the page says, where it stops and who to ask. It gives general information and is not tax or legal advice.
The page was last updated on 7 January 2021 and was read on 6 October 2026.
Are gambling winnings taxable in NZ? What Inland Revenue says
The answer sits on one short page. Inland Revenue’s ‘Taxing prize money’ says: “Generally, if someone wins a raffle, Lotto or prize money in a draw, these winnings are not taxable.” The word “generally” is part of the sentence, and it matters.
The page sits under withholding taxes, in the part about schedular payments, and the only passage that speaks to “you” is for someone who runs a sports event and pays out prize money. That helps explain why it is short, and why it leaves questions a player might have.
What this means for you: treat the page as what Inland Revenue says about prizes, and nothing wider. For how the surrounding rules fit together, see how online casino law works in New Zealand.
Lotto, raffle and TAB winnings
Inland Revenue names three things in plain words: raffles, Lotto and prize money in a draw. On the TAB it adds one line: “Similarly, prize money from a dog, horse or trotting race through the TAB is not taxable.”
Read that sentence closely. It names races. It does not mention sports betting, and this guide does not stretch it to cover bets on other events. This guide does not draw on Lotto NZ or TAB NZ, so the position here rests on Inland Revenue alone.
What this means for you: a Lotto or raffle win falls under the general rule, with the word “generally” still attached. Prize money from a race through the TAB falls under the sentence above. Everything else is not mentioned.
When is prize money taxable?
When the money is won as part of someone’s work or business. Inland Revenue puts it this way: “However, if prize money is won as part of someone’s taxable activity, then it is generally taxable.” The page adds that such money “must be included as business income or as a schedular payment (if tax is deducted from it) in the person’s tax return.”
Its examples are a farmer who wins money for an exhibit at an agricultural show, an author who wins prize money for one of their books in a competition, and a professional sports person’s prize winnings. All three are prizes for performance in a field. None is a gambler. That is a useful observation, but it does not prove that a gambler can never have a taxable activity.
“Professional gambler” is a phrase searchers use, and the page does not. It sets no amount, number of bets or frequency at which winnings become taxable. The test it gives is whether the money was won as part of a taxable activity. The wider rules on what counts as income are in the Income Tax Act 2007, and this guide does not interpret them.
What this means for you: if winning is part of how you earn a living, the general rule may not describe your position, and a tax agent is the person to ask. A general guide on a website, this one included, is no substitute for that advice.
What about winnings from an online casino?
Here the page is silent. It names raffles, Lotto, prize draws and races through the TAB. It does not mention online casino games, and it was last updated well before the Online Casino Gambling Act 2026. This guide does not fill that gap.
The same silence covers winnings from a site based outside New Zealand. Nothing on the page says whether its general rule extends to an overseas site, and this guide does not guess.
Winnings paid in cryptoassets raise a separate question. Inland Revenue’s cryptoassets page says only that “Cryptoassets are treated as a form of property for tax purposes”, and it does not mention gambling winnings or prizes. This guide draws no conclusion from that.
Tax is a different matter from player protection. The Department of Internal Affairs (DIA) says: “If you decide to use an unlicensed platform, you won’t have the same player protections.” DIA says it expects to start issuing licences “from early 2027”. For the wider legal picture, see what the law covers when you gamble online.
What this means for you: for an online casino win there is no Inland Revenue sentence to point to. The honest answer to “is it taxable?” is that the page does not say. Ask Inland Revenue or a tax agent about your own win.
Can you claim gambling losses?
The Inland Revenue page does not deal with losses, and this guide draws on no other source for them, so it says neither that they can be deducted nor that they cannot. A specific question about your own situation goes to Inland Revenue or a tax agent.
Losses also have a human side that no tax page covers. If the losses are larger than you expected when you add them up, the Gambling Helpline offers free support on 0800 654 655, or you can text 8006. For practical steps, see ways to keep gambling within limits.
After a win: Work and Income and interest
For people on a benefit, the next step may not be Inland Revenue at all. Work and Income, on a page updated on 24 July 2026, defines one-off winnings as “money you win once through gambling”. It includes “winnings you get from Lotto or any other lotteries, pokie machines and TAB”.
The page says you only need to tell Work and Income about money you win if you get Accommodation Supplement, Temporary Additional Support or Special Benefit, or if you expect to earn income from the winnings.
It also covers what happens next: “If you invest or save the money you have won, any interest, dividends or rent you get is counted as income.” And on gifts: “If you give some of the money away to family as a gift, this could affect your benefit.”
These are benefit rules, not tax rules from Inland Revenue, and the two should be kept apart. How interest on a win is treated for tax is a separate question for Inland Revenue, and its prize money page does not cover it.
What this means for you: if you receive a benefit, read the Work and Income page before you spend, save or give away a win, and tell Work and Income when the page says you need to.
The duties operators pay
Another source of confusion is that Inland Revenue does charge duties on gambling, but they fall on the businesses that run it. Its duties page lists casino duty (“payable by casino operators on gambling profits”), gaming machine duty (tied to gaming machine profits), lottery duty (“payable on the nominal value of all tickets in a lottery game”) and totalisator duty.
Online gambling duty belongs to the same family. Inland Revenue’s page applies it to operators “based overseas” who “supply gambling or competitions for prizes to New Zealand residents”. The duties page adds that a problem gambling levy “must be paid on all gambling profits”. Rates are left out here because they belong to operators and are not part of a player’s question.
Two facts sit side by side. Operators pay these duties, and Inland Revenue’s prize money page says winnings from raffles, Lotto and TAB races are generally not taxable. Inland Revenue draws no link between them, and neither does this guide.
How licensing starts, and the dates that matter to operators, are covered in the 15 online casino licences and the key dates.
What this means for you
So, are gambling winnings taxable in NZ? The table gives the short version, with the source beside each row.
| Situation | What the source says | Who says it |
|---|---|---|
| Raffle, Lotto or prize draw | Generally not taxable | Inland Revenue |
| Prize money from a race through the TAB | Not taxable | Inland Revenue |
| Prize money won in a taxable activity | Generally taxable; goes in the tax return | Inland Revenue |
| Online casino winnings | Not named on the page | Inland Revenue |
| Interest on money you win | Counted as income for benefits | Work and Income |
| Winnings while on certain benefits | Tell Work and Income | Work and Income |
Nothing in the table is a ruling on your own situation.
Where to ask and where to get help
If the answer to “are gambling winnings taxable in NZ?” is still unclear in your case, the steps below show where to go for each kind of question.
- Write down the page you relied on and the date you read it. The rules in this area are changing, and a date is what makes a source checkable.
- For a tax question, ask Inland Revenue or a tax agent.
- For a question about a benefit, ask Work and Income.
- If gambling is affecting you or someone in your whānau, the Gambling Helpline offers free support on 0800 654 655, or you can text 8006.
This guide gives general information and is not tax or legal advice. It was checked against the sources listed below on 6 October 2026.
Short answers to common questions
Do you have to declare gambling winnings on a tax return in New Zealand?
Inland Revenue says winnings from a raffle, Lotto or a prize draw are generally not taxable. If the money was won as part of a taxable activity, the same page says it must go in the person’s tax return.
Are Lotto winnings taxed in New Zealand?
Inland Revenue’s page says that, generally, Lotto winnings are not taxable. The word “generally” stays attached: the exception is money won as part of a taxable activity. This answer does not draw on Lotto NZ and rests on a page last updated on 7 January 2021.
Are winnings from the TAB taxable?
Inland Revenue says prize money from a dog, horse or trotting race through the TAB is not taxable. The sentence names races and does not mention other bets, so this guide does not extend it to sports betting. A specific bet is a question for Inland Revenue.
Are online casino winnings taxable in New Zealand?
Inland Revenue’s prize money page does not mention online casino games, and it was last updated on 7 January 2021, before the Online Casino Gambling Act 2026. This guide draws no conclusion either way. Ask Inland Revenue or a tax agent about an online casino win.
Are gambling winnings taxable in NZ above a certain amount?
The page sets no amount and no number of bets. The test it gives is whether the money was won as part of a taxable activity. If you are unsure whether that describes you, Inland Revenue or a tax agent can answer for your circumstances.
Do you need to tell Work and Income about gambling winnings?
Only in some cases. Work and Income says you need to tell it about money you win if you get Accommodation Supplement, Temporary Additional Support or Special Benefit, or expect to earn income from the winnings. Its page was updated on 24 July 2026, so check it again before acting.
Who pays tax on gambling in New Zealand?
Operators pay the duties Inland Revenue lists, including casino duty, lottery duty and, for operators based overseas, online gambling duty. A problem gambling levy also applies to gambling profits. These are charges on operators. Whether a player owes tax on a win is the separate question answered above.
References
- Inland Revenue, ‘Taxing prize money’ (last updated 7 January 2021; read 6 October 2026)
- Work and Income, ‘Lottery prize money or gambling winnings’ (updated 24 July 2026; read 6 October 2026)
- Inland Revenue, ‘Duties’ (read 6 October 2026)
- Inland Revenue, ‘Online gambling duty’ (last updated 12 September 2026; read 6 October 2026)
- Inland Revenue, ‘Cryptoassets’ (read 6 October 2026)
- Online Casino Gambling Act 2026 (read 6 October 2026)
- Department of Internal Affairs, ‘Information for players’ (read 6 October 2026)
- The Gambling Helpline (read 6 October 2026)