A major change in US gambling tax laws is affecting the poker community, with Hall of Famer Erik Seidel suggesting it might significantly reduce his career activity. The seasoned professional, renowned as one of the top players, believes the new regulation could make full-time tournament play too expensive to maintain.
Erik Seidel Plans Smaller Poker Schedule After Tax Law Shift
The tax revision, an element of President Donald Trump’s comprehensive economic plan this year, will take effect in 2026. The updated rules will allow gamblers to deduct only 90% of their annual losses instead of the full amount. While this may not appear critical initially, poker professionals argue it alters the financial viability of participating in tournaments.
Seidel, who has amassed over $48 million in live tournaments and won 10 World Series of Poker bracelets, notes that the rule might require players to pay taxes even in years when they break even or incur losses, as reported by PokerNews. In practical terms, a player who wins large sums but spends an equivalent amount on tournament entries could still owe taxes on non-existent profits.
Seidel hopes lawmakers might reverse the provision but acknowledges there is no guaranteed fix. Consequently, he plans to greatly reduce his buy-in exposure if the rule remains unchanged. Instead of frequently competing in $10,000 events and high rollers, he will concentrate on smaller tournaments, although he will still occasionally attend major events like the WSOP Main Event.
Poker Leaders Warn New Tax Law Could Push Pros Out of the Game
This issue extends beyond Seidel’s individual plans. He cautions that young professionals, who invest years honing their skills intending to compete in tournaments, might find themselves excluded from the game. He is also concerned that the policy could lead some players to engage in dubious tax practices, which he believes benefits no one.
Other prominent figures share these worries. Phil Hellmuth has criticized the rule, while Nevada politicians, including Representative Dina Titus, have attempted to introduce laws reinstating full loss deductions. Although there is bipartisan support, efforts to incorporate a solution into crucial bills have not yet succeeded.
Industry observers are apprehensive that the repercussions could extend to casinos, tours, and online platforms. Big-money tournaments might struggle to attract American players, sponsorship and endorsement deals could diminish, and total tax revenue might decline as top professionals reduce their play or retire altogether. If Congress does not revisit this issue, poker in the United States could experience substantial changes within a year, with even its most celebrated players withdrawing from the game.
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- Source: SCCGManagement.com