Finalists of the WSOP Main Event 2025 Take Home This Much After Tax Deductions
In the world of professional poker, tax implications can vary significantly depending on the jurisdiction. This is particularly true for high-stakes events like the World Series of Poker (WSOP) Main Event, where millions of dollars are at stake.
Starting from January 1, 2026, a notable change will affect U.S. taxpayers, including professional poker players. Gambling losses deductions will be capped at 90% of gambling winnings for tax purposes. This is a shift from previous rules where losses could be deducted dollar-for-dollar against winnings. This change could disproportionately affect professional poker players who often have thin profit margins.
For instance, if a player wins $5.2 million but loses $5 million, their real net gain is $200,000. Under the new rule, they might pay taxes on $700,000, which represents a 250% increase in taxable income compared to their real net profit.
This change could potentially harm the business model of professional gambling in the U.S., including poker. Phil Galfond, a professional poker player, has publicly warned about this.
For U.S. expats and non-resident aliens, tax complexities and deduction limitations can be even harsher, requiring professional tax advice.
While the search results focus mainly on U.S. tax rules, it's important to note that gambling income is taxed differently worldwide. Some countries do not tax gambling winnings at all, while others may tax the income as regular income or business income if considered professional.
The specific tax situations of the nine finalists of the WSOP Main Event depend on their residency and local laws, which are not detailed in the search results. However, it's worth mentioning that the prize money they win is generally subject to tax in the U.S. if they are U.S. residents. Non-resident aliens typically face withholding taxes on gambling winnings.
Because many high-level professional poker players travel internationally, their tax responsibilities can be complicated, involving multiple jurisdictions and treaty benefits.
In the recently concluded WSOP Main Event, Michael "The Grinder" Mizrachi won the $10 million first prize. John Wasnock, who finished in second place, won $6 million. However, the tax implications for these winners are significant. Wasnock, for example, will not pay self-employment tax on his winnings, but his runner-up prize will be subject to a $2.2 million tax bill.
Due to tax treaties with the U.S., some finalists like Luka Bojovic (Austria) and Kenny Hallaert (England) won't have to pay tax on their winnings. However, others, like Leo Margets (Spain), will have to pay about 47% of her $1.5 million prize to Spanish tax authorities.
The total purse for the finalists was $31 million. After taxes, the total prizes for the finalists amounted to just under $21 million. Despite the varying tax situations, some finishers took home more money than those who beat them due to differing tax implications.
In conclusion, tax implications for professional poker players can be complex and vary significantly by jurisdiction. The recent changes in the U.S. tax law will have a significant impact on professional poker players, especially those with thin profit margins. For detailed tax implications for specific jurisdictions or profiles of individual WSOP finalists, professional tax advice or jurisdiction-specific sources would be necessary.
In the light of the upcoming change in U.S. tax laws, some may question the impact on the broader landscape of casino-and-gambling, particularly casino-games like poker and sports-betting. For professional poker players, the capping of gambling loss deductions at 90% of winnings could significantly increase taxable income, potentially harming their business model. Furthermore, travel and competing in international poker events, such as the WSOP Main Event, can lead to complex tax responsibilities due to multiple jurisdictions and treaty benefits.
