Poker Legend Erik Seidel Follows Through With Tax-Induced Semi-Retirement

[Bawse]

After promising to semi-retire because of the tax provisions of the One Big Beautiful Bill, poker pro Erik Seidel followed through on that pledge.

The 66-year-old, 10-time World Series of Poker bracelet winner told CNBC the impact of the new law is unsustainable for a professional poker player.

The tax provision in the law, which went into effect in January, allows gamblers to deduct only 90% of losses. That could create “phantom income,” with gamblers paying taxes despite having a losing year.

“The margins are really, really thin,” he said. “If you’re a professional poker player, you’re not even guaranteed to have a profit at the end of the year. This just creates a situation where it’s really untenable. Even the elite players, they can’t overcome it.”

Cutting Back Tournament Schedule​

Seidel said he significantly cut back on tournament volume. Previously, he was playing between 100-150 tournaments every year. In 2026, Seidel is playing about a quarter of that.

Additionally, the Poker Hall of Famer has mostly eliminated high-roller events with a buy-in of $25,000 or more.

Russ Fox with Clayton Financial and Tax told CNBC the 10% disparity in the new law makes it difficult for many gamblers like Seidel to justify playing professionally. He said the limitation is “going to have a major impact.”

That sentiment was echoed by high-stakes poker pros when the provision in the bill came to light last year.

Casino industry executives have also warned that the tax provision could have a huge negative effect on the industry. One study found that annual sports betting handle could be reduced by $18 billion annually as a result.

President Doesn’t Address Issue In Las Vegas Visit​

Despite numerous efforts to repeal the provision, the tax change remains in effect. President Trump recently visited Las Vegas to promote his “no tax on tips” pledge that was also included in the Big Bill.

Nevada Rep. Dina Titus (D) urged the president to address the issue during the visit, but that apparently wasn’t discussed during his time in Sin City. He instead focused on the tips part of the legislation.

“Las Vegas is the birthplace of a little idea known as ‘no tax on tips,’” he told those in attendance. “This is the birthplace. A young waitress came up to me during dinner and she said, ‘Sir, we should have no tax on tips.’ I said, ‘That’s the greatest thing I’ve ever heard.’ I walked outside to the fake news media and said, ‘Ladies and gentlemen, there will be no tax on tips. That was it.’”

Trump said the no tax on tips part of the legislation has helped waiters, waitresses, casino dealers, bartenders, bellmen, barbers, and caddies across the state of Nevada.

In contrast to efforts to repeal the tax provision, a pair of professors recently argued that no deductions for gambling losses should be allowed because the activity is a form of entertainment.

source: https://www.cardplayer.com/poker-ne...lows-through-with-tax-induced-semi-retirement

 

[uptrendfinancialsignal]

When someone like Seidel is complaining, you should know that the matter is already very serious. Plenty of people think professional poker is some kind of easy money until the government rules change everything overnight. You can imagine losing overall for the year but you still getting tax bill because of how the law calculated it.