Poker Players Protest IRS Gambling Tax Changes

Poker players and industry leaders have testified against a new IRS gambling tax provision that could force players to pay taxes on income they didn't receive. The provision, part of the One Big Beautiful Bill, allows poker players and other gamblers to deduct only 90% of losses, creating what some are calling “phantom income.”

Poker legend Erik Seidel announced that the provision would lead to his semi-retirement. Seidel is one of several high-profile poker players who have spoken out against the tax change, which is set to take effect in 2025.

Poker player Todd Witteles suggested that gambling tax filers be separated by category, with each having its own tax structure. This could prevent a phantom tax for each of these categories, reducing the burden for high-limit players. Witteles also asked for online statements, app records, crypto records, bank transfer records, and other modern forms of record keeping to serve as sufficient proof of wins and losses in the case of an audit.