Cash Amounts for WSOP Main Event 2025 Finalists Following Tax Deductions
In the recent World Series of Poker (WSOP), the top nine finalists took home a combined purse of $31 million. However, the tax implications for these professional poker players vary significantly depending on their jurisdiction.
In the United States and other countries, gambling winnings, including poker, are considered taxable income. The Internal Revenue Service (IRS) requires withholding on large winnings, and winners must report their winnings on their tax returns. The tax treatment can be complex, with recent changes impacting the landscape. For instance, a new 90% cap on loss deductions introduced in 2026 means professional gamblers with high volumes of wins and losses might pay tax on a substantially inflated net gain compared to their actual profit. This change results in an effective tax increase of over 200% for some pros.
The American Gaming Association supports this legislation, stating it aims to increase competitiveness and innovation. However, many players criticize it for harsh tax impacts.
Within the U.S., states like Nevada, Texas, Washington, and Florida do not impose a state income tax. This absence of state income tax is a major reason some professional poker players choose to reside in these states to maximize their after-tax income.
Kenny Hallaert, the fourth place finisher, is one such player living in England. He will keep all of his $1.8 million prize due to the tax treaty between England and the US. In contrast, the runner-up John Wasnock will have a $2.2 million tax bill, despite his $6 million prize.
Mizrachi, who won the $10 million first prize, will forfeit almost $4 million of his winnings due to self-employment and US income tax, with no state tax applying as he lives in Florida.
Other finalists, such as Luka Bojovic (Austria) and Leo Margets (Spain), will keep their winnings due to tax treaties between their respective countries and the US. However, Margets will have to pay about 47% of her $1.5 million prize to the Spanish tax authorities.
The impact of taxes in different jurisdictions or professions means that some finishers in the WSOP actually took home more money than those who beat them. The total after-tax prizes for the WSOP finalists were just under $21 million.
Russell Fox, a federally licensed tax professional, analyzed the taxes for the nine people who made the final table of the WSOP. His analysis highlights the importance of understanding both federal and state (or country) tax laws for professional poker players seeking to optimize their tax liabilities.
[1] Court Ruling (2025), Professional Poker Playing Classified as Business Income in Canada [2] Galfond, Phil, Impact of New 90% Cap on Loss Deductions on Professional Gamblers [3] American Gaming Association, Statement on Tax Legislation Impacting Professional Gamblers [4] Poker Players' Union, Critique of Recent Tax Legislation Impacting Professional Gamblers
Casino games such as poker and sports betting, like sports-betting, are subject to taxation in the United States and other countries. The Internal Revenue Service (IRS) requires withholding on gambling winnings and winners must report these earnings on their tax returns, leading to complex tax implications. This is evident in the 2026 introduction of a 90% cap on loss deductions, which can result in an effective tax increase of over 200% for some professional gamblers.
