Crypto Gambling and Prediction Apps: What Are the Tax Implications in Australia?
- Apr 24
- 2 min read
We have seen a clear shift recently. More clients are using crypto-based gambling apps and prediction platforms, and some are making serious money. It feels informal, it feels offshore, and many assume it sits outside the tax system.
That assumption is wrong.
The Australian Taxation Office has made its position clear. If you are not reporting crypto-related activity correctly, you are exposing yourself to unnecessary risk.
Is It Gambling or a Taxable Activity?
In Australia, traditional gambling winnings are generally not taxed.
However, crypto platforms change the analysis.
If you are:
Betting occasionally with no system
Not relying on it as income
You may fall within genuine gambling.
But if you are:
Betting frequently
Using strategies
Reinvesting profits
Treating it as a money-making activity
The ATO may treat your activity as a profit-making undertaking or business.
When Crypto Gambling Becomes Taxable
You may need to declare income if your activity shows:
Regular and repeated transactions
Intention to profit
Structured or strategic behaviour
Significant scale of activity
If so, profits may be treated as ordinary income, meaning:
Taxed at your marginal tax rate
Required to be reported in your tax return
Subject to ATO scrutiny
Capital Gains Tax Still Applies to Crypto
Even if your winnings are not taxed as income, crypto transactions trigger tax events.
Each time you:
Use crypto to place a bet
Receive crypto winnings
Swap or transfer crypto
Convert crypto to AUD
You may trigger a Capital Gains Tax event.
This is where most people get caught out.
You do not need to cash out to your bank account for tax to apply.
Real Example of What We Are Seeing
A typical scenario:
Deposit $5,000 in crypto
Use a prediction app regularly
Grow the balance to $60,000
Withdraw funds over time
Potential outcomes:
Multiple CGT events across transactions
Income tax if activity is deemed systematic
Significant record-keeping requirements
The Biggest Risks
Be direct about this:
No transaction records
Assuming winnings are tax-free
Mixing wallets and platforms
Leaving it too late to fix
What You Should Do Now
Keep detailed crypto transaction records
Use tracking software such as Koinly
Separate wallets where possible
Get advice early
How We Help
We are increasingly working with clients who:
Use crypto gambling and prediction apps
Generate income from non-traditional platforms
Need help reconstructing complex transaction histories
We help you:
Determine whether your activity is taxable
Calculate CGT and income correctly
Stay compliant with ATO requirements
Avoid costly mistakes
Final Thoughts
Crypto gambling is not invisible and it is not automatically tax-free.
If you are making money, you need to understand your obligations now, not later.
Book a consultation with Dolman Bateman to get clarity before it becomes a problem.
