Nightmare for Poker Pros as Trump’s Bill Is No Tax Write-Off
Trump’s One Big Beautiful Bill Act is not so pretty for US poker players and gamblers, as tax will soon be payable on losses.
Will the Government consider a potential black-market exodus if the ‘general betting tax’ is increased? ©Getty
Key Facts:
- One Big Beautiful Bill Act means poker players can only claim back 90% of losses.
- Winners and losers will be hit hard by the law change.
- The UK’s tax-free gambling laws may attract more new arrivals.
- Congresswoman Dina Titus is seeking a Fair Bet solution.
During an extravagant July 4 ceremony on the White House South Lawn that featured fireworks and a military aircraft flyover, President Trump signed a 940-page sweeping spending and tax legislation bill, known as the ‘One Big Beautiful Bill Act’, into law.
Guests for the Independence Day picnic included numerous military families – the usual ‘go-to’ invitees for such events – but it is doubtful that any professional poker players, or gamblers per se, embraced the free dinner given the gravity of Trump’s latest handiwork.
Courtesy of a provision under Section 70114 of ‘The One Big Beautiful Bill Act’ is an amendment that significantly impacts professional poker players in the United States. This alteration limits the tax deduction for gambling losses over a year to 90%.
How Will Trump’s New Law Effect Poker Players?
Starting in 2026, poker players and US gamblers of all kinds will only be able to write off 90% of their gambling losses. It is 100%, meaning a person who won $100,000 during a year but also lost $100,000 will have broken even and would not be subject to taxes.
Under the new law, using the above example, US poker players will still be liable to pay taxes on $10,000, as that figure represents the remaining 10% of losses. In short, gamblers who win and gamblers who lose will all have to pay taxes from the start of 2026.
Unlike the UK, where there is no tax on winnings of any kind – including lottery jackpots worth millions – gambling winnings for US citizens can be subject to many taxes. For example, a New York City poker player must pay Federal, State, and City taxes.
Death and Taxes: Not So Sure
This system has seen many successful US poker players emigrate to Florida, where the effective tax rate can be under 30%, even for the biggest winners. 2024’s World Series of Poker Main Event final table demonstrates the disparity between the US States and also other parts of the world.
Texan resident Jonathan Tamayo paid approximately $3,992,302 (39.92% of his $10 million winnings) in taxes. As an Arizona resident, Runner-up Jordan Griff is thought to have forfeited 41.8% of his $6 million prize ($2,507,808).
Third-placed Niklas Astedt fared better. As a Swede, 35% of his $4,000,000 winnings were withheld. Canada’s Jason Sagle paid approximately 30% of his $3 million fourth-place prize. Bulgaria’s Boris Angelov was the big tax-stake winner. He probably forfeited 10% of his $2.5 million prize.
The big loser was Andres Gonzalez. Since 2023, his country has categorised poker players as professional athletes for tax purposes. This means that, as a Spaniard, approximately $940,000 of his $2 million in winnings (for finishing sixth) would have been paid in taxes.
The French Connection
The final table of the 2017 World Series of Poker Main Event was not memorable for US tax authorities. The winner, Scott Blumstein from New Jersey, did hand over $3.8 million (47% of his winnings), and Daniel Ott (Pennsylvania) paid $2.1 million.
However, the two Brits at the final table – John Hesp and Jack Sinclair – kept all of their $3.8 million prizemoney. Furthermore, the two French players, Antoine Saout and Benjamin Pollak, claimed UK residency, allowing them to keep all their combined $5.5 million winnings.
Saout remains listed with Gov.uk Companies House as the director of a London-based ‘Residents Property Management’ company, albeit he is personally described as a Professional Poker Player’. Recent developments may see US citizens look for similar opportunities.
The Lose-Lose Situation
It is noted that Philip Sternheimer is officially listed as a British 2025 WSOP gold bracelet winner. However, he is an American citizen who is a UK resident. Resultantly, unlike his compatriots, he will be subject to zero tax on his poker winnings – and, from 2026, on his losses too!
But the impact of the ‘One Big Beautiful Bill Act’ on gamblers who are not able to find a workaround is so significant that it is sure to see the gambling industry suffer a dramatic fall in business.
“A gambler with $950,000 worth of winning wagers and $1 million of losing ones would have to pay taxes on the $950,000 while being able to deduct only $900,000 of the losses,” said Russell Fox, a Nevada-based accountant who specialises in gambling when talking to the Washington Post before the Bill was signed.
“He or she would be forced to pay taxes on $50,000 of ‘phantom income’ despite having lost that much money in reality,” Fox continued before looking at the impact on a winning gambler.
“Under the new bill, gamblers who win $1 million and lose $900,000 in a year will be able to deduct just $810,000 of those losses, meaning they will pay taxes on $190,000 despite taking home $100,000!”
Dina Titus is the Fair Bet Champion
Congresswoman Dina Titus, representing the First District of Nevada in the US House of Representatives, has immediately moved to attempt to stop the potential disaster that Trump’s new law could create.
On July 7, she introduced ‘The Fair Accounting for Income Realized from Betting Earnings Taxation (FAIR BET) Act’ with co-sponsor Ro Khanna (US representative from California’s 17th congressional district). Its goal is to reverse the new 90% loss-deduction cap and restore the previous 100% deduction of gambling losses against winnings.
If passed, FAIR BET would restore full deductibility of losses before the current law takes effect on January 1, 2026. According to the American Gaming Association, commercial gaming revenue in the US reached nearly $72 billion in 2024. It was the fourth consecutive record-breaking year.
