With poker players concerned about the ramifications of the federal government’s new tax provisions set to go into effect in January, President Donald Trump may be considering eliminating taxes on gambling winnings altogether.
The move would be a major shift in US policy and a reversal by Trump, who signed the controversial tax change into law earlier this year.
“No tax on gambling winnings, I don’t know,” he said in response to a reporter’s question aboard Air Force One this week. “We have no tax on tips. We have no tax on Social Security. And we have no tax on overtime. No tax on gambling winnings, I don’t know about that. I’m going to have to think about that.”
Seidel Says He’s Considering Less Poker Play Over Tax Change
Eliminating all taxes on gambling winnings would be a stark change from the gambling provision in the recent “One Big Beautiful Bill.” That change will allow gamblers to deduct only 90% of their losses starting next year. They can deduct 100% of their losses now from their taxes.
The change is expected to create “phantom profits,” meaning gamblers could pay taxes on money they didn’t receive.
The issue has been a major source of concern among poker players. Ten-time World Series of Poker bracelet winner Erik Seidel is even considering semi-retirement.
So far, bipartisan efforts to rescind the provision have been met with roadblocks. The chances of a reversal appear slim, according to Kalshi. The odds of a change in 2025 stood at only 5% as of Monday morning. A reversal before April 2026 stood at just 32%, with just half of bettors thinking a change would take place before 2027.
Poker Player Scoffs At Trump’s Comments
If all taxes on gambling winnings were eliminated, it would bring the US in line with some other countries. The UK, Canada, Australia, Belgium, Germany, Italy, Sweden, and several other countries don’t levy taxes on winnings.
“Eliminating all taxes!” poker pro Patrick Leonard called out on X. “Talk about one step back, two steps forward. He’s obviously a Seidel fan! The hope the poker world needs (at the moment)!”
Some players didn’t feel there was much to Trump’s thoughts on the issue, including Gary Gates, who finished fourth in the 2019 WSOP main event.
Complete nothing burger. He was simply asked the question on AF1, he’s not actively considering or working on this. pic.twitter.com/pB1ZxsUjuW
— GG (@GarryGates) December 10, 2025
In July, Russ Fox, the principal of Clayton Financial and Tax of Las Vegas, looked at how much those at the WSOP main event final table would pay in taxes. South Korea’s Daehyung Lee took ninth, collecting a $1 million prize. He suffered the worst from the tax man.
The US tax treaty with his home country doesn’t account for gambling winnings, so $300,000 was withheld by the IRS. Fox reported that South Korea has a tax rate ranging from 6% to 45%, along with a 10% local tax.
While he should be able to recover the $300,000 from the IRS via a foreign tax credit, he will still pay $517,212 in taxes in South Korea, at a tax rate of 51.72%.
