Microgaming has powered Canadian online casinos for decades, and after testing a new round of platforms this year, we noticed how much smoother and more consistent their games have become. At the same time, players still ask about taxes just as much as they ask about bonuses or payout times. We pulled everything together – the Microgaming casinos that performed best for real-money play and the tax rules Canadians need to know before jumping in.
Are Gambling Winnings Taxable in Canada?
The simple answer is no – most gambling winnings in Canada are not taxed. According to Canadian tax law (paragraph 40(2)(f)(ii) of the Income Tax Act), money you win from betting or prizes is usually not considered taxable income.
However, there are exceptions:
- Investment Earnings: If you earn interest or dividends from investing your gambling winnings, those earnings are taxable.
- Professional Gamblers: If gambling is your main job, like playing poker or betting on sports, your earnings are considered taxable income. You must report them and may pay between 15% to 33% in taxes, depending on your income. You can use forms like T3, T5, or T5013 to declare this income.
Professional gamblers can also deduct losses from their earnings when calculating taxes. Both federal and provincial taxes apply.
Do Professional Gamblers Pay Income Tax?
Yes, professional gamblers in Canada must pay income tax. You’re considered a professional gambler if you gamble full-time (online or offline), earn a living from it, or aim to make consistent profits.
Some signs that you’re a professional gambler include:
- Gambling is your primary source of income.
- You’ve been making money from it over a long period.
- You have advanced skills and regularly practice gambling.
- You maintain detailed records of wins, losses, and expenses related to gambling.
- You operate as a sole proprietor or have business structures tied to your gambling activities.
Professional gamblers, like poker or blackjack players, are treated as running their own business, and their income is taxable. However, they can deduct losses from their taxable earnings, based on federal and provincial tax laws.
Are Lottery Winnings Taxed in Canada?
No, lottery winnings in Canada are not taxed. These are considered “windfalls,” meaning luck-based gains with no expectation of profit, and the Canada Revenue Agency (CRA) doesn’t treat them as taxable income. This also applies to charitable lotteries and sweepstakes.
However, any money earned by investing your lottery winnings is taxable. For example:
- Interest from depositing your winnings in a bank account.
- Dividends or capital gains from investing winnings in stocks, mutual funds, or other financial products.
To avoid taxes on earnings from investments, consider using a Tax-Free Savings Account (TFSA) to grow your money tax-free. In summary, while the winnings themselves are tax-free, it’s important to plan wisely if you decide to invest or gift part of your windfall. Regular tax rules apply to any income or gains generated from your winnings.
Gambling Tax Regulations for Online Casinos in Canadian Provinces
| Province/Territory | Gambling Tax Regulation |
|---|---|
| Northwest Territories | Regulated by the Northwest Territories Liquor and Cannabis Commission (NTLCC). Online casinos are rare, and revenue-sharing agreements are made with larger provincial lottery systems. |
| Nunavut | No specific gambling regulator; residents access Microgaming online casinos from other provinces. Tax revenues, if applicable, are shared with other regions’ regulatory bodies. |
| Manitoba | Overseen by Manitoba Liquor and Lotteries Corporation (MBLL). Online casinos operating locally contribute to provincial revenues through agreements with MBLL. |
| Alberta | Gambling is regulated by the Alberta Gaming, Liquor and Cannabis Commission (AGLC). Online operators pay licensing fees and a percentage of revenues as tax, typically around 10-15%. |
| New Brunswick | Governed by the Atlantic Lottery Corporation (ALC). Operators pay a share of net revenues; exact percentages vary by agreements. |
Understanding how gambling tax affects players highlights the importance of choosing platforms that prioritize transparency and fairness. The best Microgaming sites not only offer engaging gameplay but also ensure clear pricing and compliance with tax regulations, establishing a smooth and reliable gaming experience.
What Canadian Online Casino Pays out the Most?
- Spin – High RTP slots & fast withdrawals
- Royal Vegas – Trusted brand with progressive jackpots
- JackpotCity – Big wins on Mega Moolah slots
- LeoVegas – No withdrawal limits, fast payouts
- Ruby Fortune – Secure banking & frequent promotions
- Need For Spin – Best for slot tournaments
- Bizzo – 10,000+ games & daily cashbacks
Let’s check the top Microgaming platforms in Canada, offering exceptional gaming experiences, player rewards, and seamless compliance with tax regulations.
Spin Casino
Spin Casino exclusively uses Microgaming software to deliver over 450 games. The platform is particularly strong in progressive jackpot slots. It also offers appealing promotions and loyalty rewards for both new and existing players.
Features
- Advanced SSL encryption for secure transactions and player data protection.
- Regularly audited by independent organizations to ensure fairness and transparency.
- A diverse selection of payment methods, including e-wallets, credit cards, and bank transfers.
- Access to live dealer games for an immersive casino experience.
- Free spins and deposit match bonuses for new players to explore the platform.
Royal Vegas Casino
Royal Vegas boasts a Microgaming-powered portfolio of over 500 games. The site is well-known for its intuitive interface and mobile-friendly design, making it easy to enjoy Microgaming’s games on the go.
Features
- Includes a comprehensive FAQ section to address common player inquiries.
- Supports a wide range of currencies, including CAD, for Canadian players.
- Seamless mobile app available for iOS and Android devices.
- Employs advanced security measures, including 128-bit SSL encryption, to protect user data.
- Game library is updated frequently to guarantee the latest Microgaming releases are available.
JackpotCity Casino
As a long-standing Microgaming partner, JackpotCity Casino provides a stellar lineup of over 600 games. With the help of Microgaming’s state-of-the-art technology, the site is especially well-liked for its progressive jackpots and captivating live dealer games. It is a favorite among seasoned players because of its loyalty program and frequent bonuses.
Features
- Equipped with high-definition live dealer games for a realistic casino experience.
- Boasts a comprehensive loyalty program with tiered rewards.
- Regularly updated game library to include the latest titles and features.
- Offers free spins as part of promotional campaigns and loyalty rewards.
- Available in multiple languages and currencies for global players.
- Licensed and regulated by respected gambling authorities to ensure player safety.
LeoVegas Casino
LeoVegas features an impressive mix of games, with Microgaming as one of its key software providers. Players can enjoy a blend of slots and games, alongside games from other developers. Known for its mobile-first design, LeoVegas is ideal for gaming on the go.
Features
- 24/7 customer support via live chat, email, and phone.
- Advanced security measures, including SSL encryption, to safeguard player information.
- Loyalty program with VIP benefits such as exclusive promotions and account managers.
- Regularly updated game library with new releases and trending titles.
- Extensive sports betting options in addition to casino games.
- Generous welcome bonus package for new players, including free spins and deposit matches.
Ruby Fortune Casino
Ruby Fortune, powered solely by Microgaming, offers over 450 games. It’s celebrated for its sleek design, user-friendly interface, and a balanced mix of slots and table games. Regular promotions and a generous welcome bonus make it a great choice for new players.
Features
- Monthly featured games with boosted rewards and bonuses.
- Extensive FAQs and support resources for self-service assistance.
- Fully licensed and regulated to ensure secure and fair gameplay.
- A wide range of payment methods, including PayPal, Neteller, and credit cards.
- Robust loyalty program with tiered benefits, including cashback and exclusive offers.
Do any Online Casinos Actually Pay Out?
| Name | Payout Speed | Payment Methods | Minimum Withdrawal |
|---|---|---|---|
| Spin | 24-48 hours | Interac, Visa, e-Wallets | $10 |
| Royal Vegas | 24-72 hours | Bank Transfer, Crypto | $20 |
| JackpotCity | 24-48 hours | PayPal, Neteller, Skrill | $10 |
| LeoVegas | Instant-24 hours | Visa, Crypto, e-Wallets | $10 |
| Ruby Fortune | 24-48 hours | Interac, Mastercard | $10 |
| Let’s Go | 24-72 hours | e-Wallets, Bank Transfer | $20 |
| Lucky Dreams | 24-72 hours | Bank Transfer, Crypto | $10 |
Top Slot Games by Microgaming
| Game Name | Description | Key Features |
|---|---|---|
| Battlestar Galactica | A sci-fi-themed slot based on the popular TV series, featuring characters and missions. | Multi-level gameplay and cinematic visuals. |
| Hitman | Inspired by the iconic video game series, offering stealth and action-packed spins. | Expanding wilds, scatter bonuses, and weapon symbols. |
| Mega Moolah | The legendary progressive jackpot slot known for creating millionaires. | Jackpot wheel and African safari theme. |
| Bar Bar Black Sheep | A quirky farm-themed slot with humorous visuals and exciting payouts. | Bar Bar Bonus and multipliers. |
| Immortal Romance | A vampire-themed slot with a captivating storyline and romance-driven gameplay. | Chamber of Spins bonus and character-based rewards. |
What to Look for When Choosing a Microgaming Casino
Microgaming Software Systems Ltd is a well-established provider. Having developed its first games in 1994, the company claims to have created the world’s first online casino. Here’s a simple guide to help you choose the best Microgaming platform.
A Trusted Industry Leader
Microgaming is one of the top names in the gaming industry, powering over 400 brands with its extensive library of games. Based in the Isle of Man, the company is particularly famous for its progressive jackpots, which are linked across the best online Microgaming casinos, leading to record-breaking payouts. In fact, Microgaming holds the record for the largest online jackpot ever paid – €6.37 million.
Familiar Games for Every Player
Even if you don’t recognize the Microgaming name, chances are you’ve enjoyed their games. They are behind some of the most popular branded slots.
Not Just About Slots
While slots are a major highlight, Microgaming also excels in other areas. The company operates one of the longest-running online poker networks, the MPN, making it a top choice for poker enthusiasts as well.
Choosing a Microgaming site means gaining access to reliable software, exciting games, and record-breaking jackpots.
FAQs
Find answers to the most common questions about Microgaming, from their extensive game library to what makes them a leader in online casino gaming.
Winnings themselves are not taxable, but any earnings generated through investments, such as interest or capital gains, are subject to standard taxation rules.
As one of the pioneers in online gambling, Microgaming started in 1994 and has consistently focused on delivering cutting-edge technology and reliable gaming experiences. Their commitment to innovation has earned them a strong reputation, with games now available on over 160 platforms in 24 languages, compatible with PC, Mac, and mobile devices.
Microgaming’s Progressive Jackpot Network is a standout favorite, thanks to its massive payouts. Players have collectively won over $320 million, including a record-breaking single jackpot of $6.37 million.