What records should I keep of my online gambling activity in case I ever need them for tax purposes?

Here's the honest starting point: for most Toronto recreational players, online gambling winnings from Ontario's regulated market are not taxable under Canadian federal law. Lottery and gambling winnings are generally not subject to income tax unless the amounts are earned by the taxpayer through carrying on a business. Canadian courts have generally held that lottery and gambling winnings are not considered a "source" of income for tax purposes, unless they were earned through the carrying on of a business — and they have therefore generally not been taxed under the Canadian income tax system.

So why keep records at all? A few very real reasons.

When the "not taxable" rule has exceptions

An individual's gambling activities may result in taxable business income or a business loss if those activities constitute a source of income — that is, carrying on the business of gambling. This may include skill-based activities such as poker, which may constitute a business of gambling when conducted in a sufficiently organized and commercial manner. If you play poker seriously, bet at high volume, or treat any game with a systematic, profit-oriented approach, the CRA may view your activity differently than casual play. That's the line that matters, and it's fact-specific — a tax professional is the right person to assess your situation.

Beyond that, even non-taxable winnings can create a paper-trail problem. Non-taxable lottery and other winnings may be encountered when examining the source of funds used to support a taxpayer's accumulation of assets, lifestyle, deposits to personal bank accounts, or contributions to a business. In plain terms: if you withdraw a large sum from an Ontario online casino account and it shows up in your bank, the CRA may ask where it came from during an unrelated audit. Without records, you can't easily prove it was gambling proceeds rather than unreported income.

What to actually keep

The CRA's own audit guidance spells out what auditors look for when reviewing gambling activity. For all winnings and losses, they may request: type and frequency of gaming or betting; minimum, maximum, and average gaming loss or bet; source of funds used to place wagers; frequency of wins versus losses; and minimum, maximum, and average gaming win.

For online play on Ontario's regulated platforms, you're in a much better position than a cash casino player — the digital record trail is inherently richer. Online betting and gambling require the use of a credit card or e-commerce account where wagers are withdrawn and winnings are deposited, which means transaction records exist by default. Still, don't rely solely on the operator to hold them forever. Here's what to preserve yourself:

• Account transaction history — download your full deposit, withdrawal, and session history from every Ontario-registered operator you use. Do this periodically; platforms don't guarantee indefinite access to old records.
• Bank and payment records — keep statements showing transfers to and from your gambling accounts. These corroborate the operator records independently.
• A personal log — if you play regularly, a simple spreadsheet noting date, platform, game type, amount wagered, and net result is worth the five minutes. It mirrors exactly what CRA auditors ask for.
• Screenshots of account balances at year-end, especially if you carry a significant balance on a platform.
• Any correspondence confirming large withdrawals or account closures.

How long to keep them? The CRA's general rule for personal records is six years from the end of the tax year they relate to — use that as your floor.

One practical note specific to Toronto players: Ontario's regulated market is managed by iGaming Ontario and overseen by the AGCO, and every legitimate operator in it displays both the iGaming Ontario and BetGuard logos. Sticking to those registered sites means your records are more likely to be clean, verifiable, and supported by the operator's own internal systems — which matters if you ever need third-party confirmation of your activity.

None of this is legal or tax advice; if your play is substantial or you're unsure which side of the "business of gambling" line you fall on, speak with a Canadian tax accountant. And if gambling ever starts feeling less like recreation and more like something you can't control, ConnexOntario (1-866-531-2600) is there — as is BetGuard at betguard.ca for self-exclusion across all Ontario-licensed sites. Ontario's regulated market is 19+ only.