Thursday, November 1, 2007

Poker laws in Australia

The last couple of days I can do no wrong at Pokerstars. I just keep hitting everything. I hoping I'm on the start of a rush (if this doesn't jinx me nothing will). October as a whole was a fairly poor month. I struggled in the cash games, and donked off a bit of money playing sit'n'go's. The one good thing about a tough month is that it does force you to think about your game and make an effort to improve it. When things are going well, it easy just to go with the flow. I have definitely learned a couple of new profitable strategies in October, so it's got to be a good thing in the long run. One thing I have been doing in the past is over-betting my bluffs, when in reality if your opponent doesn't have much you don't need to bet a lot to get them off their hand.

I've also been playing some live poker lately. Public poker tournaments with a cash entry fee are illegal in the state where I live (Queensland), but 20 min's drive away in New South Wales cash games Tournaments are allowed. A Pokerdome has opened at one of the sports clubs, and runs cash tournaments all day. The level of competition is very weak, and is a bit of fun when I don't feel like playing online. I've only entered two 50 – 60 player tourneys and come second in both, earning me the nickname of "bridesmaid". I've been reading up on poker tells and it is amazing how obvious some of them are in live poker. I'll list the most reliable ones I've found tomorrow.

Today's Topic: Poker Laws in Australia

Poker is becoming very popular in Australia. The laws on where poker can be played for money vary from state to state, and I'll summarize below.

  • Cash game poker in a casino: Is legal and available within all states in Australia
  • Poker tournaments with a cash entry fee and commission charged, outside of a casino: Are legal in both NSW & Victoria.
  • Poker tournaments with free entry but prizes awarded, outside of a casino: Are also legal in Queensland


     

  • Private or social poker for money: It is legal to play poker for money at a private house or residence, for entertainment purposes only in NSW, Queensland, Tasmania, and Western Australia provided that:


     

    • No entry fee or registration is charged to play the game
    • No person derives a percentage or share of the amounts wagered
    • All money bet goes to the player/s who won the hand

You are not liable to pay income tax on any money won playing poker in Australia as it is considered a form of gambling. Gambling winnings are not liable for personal tax provided that the gambling activity is not regarded as your primary source of income.

For any Americans reading this I think that you will agree that the Australian government has a lot more liberal approach to poker than your own government.


 


 

165 comments:

Anonymous said...

Yes, more tolerant than in the U.S. but it is illegal for a site to provide online poker to Australian players...better ruling in the U.K.
I am still wondering how sites like PokerStars can still be in business whilst providing an illegal service to so many Australian.

Anonymous said...

IS online internet casino's (international) legal to play in queensland!

Hi, I wonder if you can help me.?
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Also do you know if online casino winnings are tax free?

cheers mike

Unknown said...

It’s great to know that laws in Australia are more tolerant than U.S. since, I am a poker addict I will be playing poker in Australia when I fly down to Sydney next month.
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Interesting to know.

Anonymous said...

I know this post is old, but what if your main source of income is poker? How do taxes work then?

Anonymous said...

Hi Cameron.

Bing a 'Poker Professional' myself well thats what my job title is. I pay take for my winnings on Poker.

Reason: Because I'm a TD and Full Time Player at Crown i have to pay income tax. Same as any other income tax. The only difference is that i don't get payslips for my profits at crown. I do for being a TD and pay tax on that only :p

Basic tax rates apply and vary depending on how much you earn.

Anonymous said...

Your article is not entirely correct.

Gambling winnings CAN be taxable in Australia. It does not matter solely whether or not it is your primary source of income. The tax law specifies you have to be "in the business of gambling and betting". What "in the business" entails has been best defined by the Full Federal Court in the Bradjovich case which applied six criteria.

You are correct to say that in general poker winnings are not assessable, but take it from me (a person who the ATO is taking issue with over poker winnings) there are likely to be exceptions to this rule and its not as black and white as you make it sound.

Anonymous said...

Are low-stakes home poker cash games legal in SA?
I cant find a difinitive answer anywhere.

Anonymous said...

I can't argue with that! The laws on Australia are well disciplined. where poker can be played for money in different states. How i wish the US and other countries be like the Australian Government.

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I can't argue with that! The laws on Australia are well disciplined. where poker can be played for money in different states. How i wish the US and other countries be like the Australian Government.

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I can't argue with that! The laws on Australia are well disciplined. where poker can be played for money in different states. How i wish the US and other countries be like the Australian Government.

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Anonymous said...

Yeah. It is only illegal for them to advertise "Real money poker" to australians. They get around this by advertising the free play side of the site. But it is not illegal for aussies to play on there sites..

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