The Taxation of Winnings from Poker and Other Gambling Activities in Canada

Abstract

In Canadian income tax law, winnings from gambling are taxable when they constitute “income from a source.” What is not clear is the basis for determining when, where, and how winnings from gambling activities can amount to “income from a source.” In light of recent decisions of the Tax Court of Canada, notably in Leblanc and Cohen, this article examines the court’s treatment of this issue through an analysis of the decisions in Canadian gambling cases dating from the early 1950s to the present.

Keywords: gambling, taxation, income, sources, reasonable expectation of profit, Canada