Answer: Canadians don’t have to pay tax on any entertainment and Canada does not collect taxes on gambling winnings made in another country.
The Canadian Income Tax Act (CITA) defines “gambling” as a game of chance where “winning depends primarily upon the skill or dexterity of the player,” such as poker, bingo and lotteries. Winning wagers from these games are not subject to income tax. Bets placed at race tracks, lottery tickets bought in Ontario, provincial sports pools and other forms of betting that do not rely predominately on chance to award prizes are also exempt from taxes because their revenues flow mainly into provincial coffers.