Accountant Ray Kondler analyzes the newly passed 10% total prize money tax, explaining its profound impact on poker players, sports bettors, and the entire gambling industry, and providing key advice for professional players on how to handle the tax.
A new regulation imposing a 10% tax on gross winnings has sent shockwaves through the gaming industry. According to Ray Kondler, managing partner and accountant at Kondler & Associates, its impact extends far beyond the poker table.
"The Big Beautiful Bill isn't good for gamblers," Kondler said on the PokerNews Podcast. "It's not just about poker players; it affects sports bettors, it affects all forms of gambling. It affects that old lady playing the slot machine. It affects every gambler."
Impact on the championship arena
The financial impact is already evident in tournaments. Kondler points out that earlier this year, there was a significant decrease in attendance at high-stakes events as players actively avoided this tax trap.
“Big-name players aren’t participating in the major main events,” Kondler said. “They’re instead playing in smaller events because they know that if they win, they’ll face tax issues.”
"The people who put this clause in (the bill) didn't realize the impact it would have on everything. Not just players, but casinos as well. If nothing changes, this will be a huge problem."
Although lobbying efforts are underway in hopes of repealing the provision later in 2026, the law remains in effect for now.
"Regardless of how much of the IRS's budget comes from this revenue, I think it's severely underestimated. It will affect every single tax return we file. Our phones are ringing off the hook because it affects everyone."
Kondler also revealed that they have spoken with Nevada Representative Dina Titus, who has been actively involved in trying to overturn or amend the deduction clause. PokerNews' Chad Holloway sat down with Representative Titus earlier this year to discuss these efforts and the likely future of the matter.
Record keeping and deduction amount
For professional poker players, one of the most important things they can do is keep track of all their expenses while playing. For those filing as "professionals," submitting Schedule C business tax returns can unlock key tax deductions during tax season.
"If you're going to pay taxes on your total bonus 10%, you'd better make sure you keep all the expenses and all the receipts," Kondler said.
"This is a business. So you can deduct all your travel expenses, all your meal expenses, your phone bill, your rent when you rent a place, because if you rent a house or live anywhere, it's deductible, since it's considered an office."
Under the new regulations, tracking every single dollar is crucial.
"In the past, if you won $100,000 and lost $100,000, they would cancel each other out. But now, if you win a lot, but your buy-in is only $90,000, you'd better make sure you have another $10,000 (to deduct). You need to get every deduction you can get."
Kondler & Associates assists poker players
Kondler & Associates will maintain their dedicated information desk outside the main registration area of the World Series of Poker to help players navigate these changes.
“We’ve had a booth there for many years, we’re there every day,” Kondler said. “We love our work. For us, it’s not a job, it’s fun. All our players are excellent players and great people, but each of them has their own unique qualities.”
"So if you come to participate in the world championships, feel free to ask us questions. We'd be happy to provide assistance to the best of our ability."
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