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Tax Law That Targeted Tournament Poker Players Stopped

Casinos Will Be Responsible to Collect Forms After Big Wins

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American tournament poker players can now breathe easier, because a proposal by the IRS to siphon off 25 percent of their tournament poker winnings will not be made into a tax law.

A proposed rule that would have forced tournament poker players to give up 25 percent of their tournament winnings of $5,000 or more to the government will not go on the books.

Thanks to discussions between representatives of the American Gaming Association (AGA) and IRS officials, this plan was killed. Now, players who gross $5,000 or more in a poker tournament will have to fill out a W2-G form immediately after they get paid. They are then responsible to pay taxes up to 30 percent of the winnings. The percentage depends on what tax bracket the player is in.

If this sounds familiar, it should. This is the same procedure many casinos have used for years, but this is the first time a universal rule will force all casinos to comply.

"Heretofore, it has sort of been a handshake (between casinos and the IRS), and the handshake goes back to the Binion's days. In lieu of a handshake, they put their minds to it and the IRS has come up with this procedure," said Wally Chalmers, the vice president of the AGA. "Overall, our guys are totally pleased with what they came up with."

According to Chalmers, if a player gives the casino false information, or if the casino fails to collect a W2-G form from its players, they are potentially responsible for paying the taxes.

All of the details of the procedure and the dates for when it will go into effect are still being worked out.

 
 
Tags: poker law
 
 

Comments

zurick
over 14 years ago

Hello, What about Canadian? Why they keep 30% fore use and not from europe coutry, Gab

 
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