Canda Casino – Workers Must Pay Tax on Tips

In Canada, gamblers are tax-free, but tips patrons are not specific to casino workers by their winnings. Gratuity is not a “gift”, but a taxable income that workers receive for their professional services.

No tax on Gambling :-

Gambling in Canada does not tax winnings because it is not considered a continuous source of income, Xia said the money received from customers as part of a “source or category of jackpot wins”, which are tax-free by law.

In the initial ruling, Judge Diane Campbell wrote, “Casino patrons who win the jackpot will not be taxable.” “However, when part of those wins is paid to a casino employee as a thank-you or for the appreciation of services received by the patron, the nature of that amount changes from being non-taxable to the taxable amount.

The appeal agreed in court and the tip money was declared taxable.