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DATE: May 26 2012
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Poker.co.uk - Poker News Archive

Monday 3rd September 2007

New US Tournament Tax Law to Hit Players Hard

In the United States, a new tax code has been released that will see casinos responsible for taking as much as 25 percent of players� total tournament winnings in duty.

Beginning in March, casinos and card rooms in America are to start withholding one quarter of any poker tournament winnings of $5,000 or more after a recent Tax Court ruling. This ruling held poker to be gambling and not an activity of skill as far as taxation is concerned.

The law requires casinos and card rooms to withhold and report winnings from players that have won more than $5,000 in a tax year but only applies to card rooms and casinos on US soil and also doesn�t address winnings from online poker sites or from casinos outside of the country.

The new law will particularly affect poker hobbyists who go deep in tournaments with buy-ins that range from $100 to $550 and those who make their living on the poker tournament circuit.

If the law had been in effect earlier this month, the top seven finishers of the $500 Legends Of Poker event last month would have paid a total of $40,221 in tax. The runner-up of the tournament, which attracted 460 entrants, would have taken home $27,972 after tax but $37,295 before. The winner received $74,585 but that amount would�ve been $18,646 less if the law had been in effect.

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Source: OnlineCasinoNews

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