A new federal tax rule is already shrinking poker schedules.
Poker Hall of Famer Erik Seidel told CNBC recently that he is skipping bigger buy-in tournaments because the incoming rule will make high-volume poker harder to justify.
“This just creates a situation where it’s really untenable,” Seidel said.
Under the new rule, gamblers will be able to deduct only 90% of losses against winnings, down from 100%, meaning players could owe taxes on money they never actually kept.
Don’t Miss:
- Investors With $1M+ Often Use Advisors for Tax Strategy — This Tool Matches You With One in Minutes
- Demand for Faster Diagnostics Is Surging — NASA- and NIH-Supported Space-Tested System Targets At-Home Lab-Quality Blood Testing
A Tax Change Is Reshaping Poker Schedules
The 66-year-old poker professional has earned more than $48 million in live tournament winnings over a career that stretches back to the late 1980s, according to the Hendon Mob Poker Database.
Seidel played his first major tournament in 1988, finishing as runner-up in the World Series of Poker main event. He became a full-time professional poker player in 1995.
In recent years, he estimated playing roughly 130 to 150 tournament entries annually. Last year, his total tournament winnings topped $2.8 million.
That pace is changing as the new tax rules take effect this year.
Under President Donald Trump‘s One Big Beautiful Bill Act, gamblers can no longer fully deduct wagering losses against winnings. Instead, they can deduct only up to 90% of losses, while all winnings remain taxable income.
Trending: What If Your Investment Income Didn’t Rely Entirely on Market Swings? Some Investors Are Taking a Different Approach
For Seidel, the shift changes the math behind high-volume tournament poker, especially in events with large buy-ins.
“I’m going smaller because I don’t want the numbers to get too high if I’m only able to deduct 90%,” Seidel told CNBC. “I’ve just been really taking it easy and avoiding $10K [buy-in tournaments] and above, which are the tournaments that I normally play, and not traveling as much this year.”
The Math Gets Harder For Professional Players
Tax professionals say the rule matters most for players who put large sums at risk across many events, even when their final profit is small.
Clayton Financial and Tax principal and enrolled agent Russ Fox told CNBC that several professional poker players he works with have already reconsidered playing full time.
See Also: Think the biggest tech gains happen after an IPO? Click here to see why some investors are looking at opportunities before companies go public.
Fox gave the example of a player who records $100,000 in winnings but also racks up $110,000 in losses over the year. Under the new rules, only 90% of losses can be deducted, meaning the player could owe taxes despite losing money overall.
He said he has encouraged clients to rerun previous years under the new rules to …
This post was originally published here
