WSOP Payouts and Taxes (3 Viewers)

Mandos

Mandos

3 of a Kind
Joined
Jan 6, 2022
Messages
540
Reaction score
664
Location
Missouri, USA
1658341914169.png

Saw this chart in this article (https://www.pokernews.com/news/2022/07/2022-wsop-main-event-money-41686.htm) on effective taxes for the final table winners at the WSOP. It's insane how much Espen saved by officially being a UK resident. He would have had to pay 2.8 million if he were in Norway still and probably even more in the US.
 
Soooooo planning for next year, I have 2 questions...
  1. How many days between the final table being made and the resolution?
  2. How long does it take to get UK citizenship? :whistle: :whistling:
 
allforcharity said:
Should be tax free in Canada , too.
Click to expand...

I would have thought that money “earned” in the US would be subject to US taxes. But some countries apparently have an agreement with the feds that their citizens’ gambling winnings aren’t subject to US tax. I don’t think Canada is one of those countries.

Many (many) years ago I bought into a casino cash game in Carson City NV, and when I cashed out my remaining chips (less than my buy-in), the cashier deducted tax because I was from out of the country. I was told that I could apply for a refund from the IRS if I qualified, but hiring an accountant to navigate the process would have cost more than the taxes the casino stole (er, withheld) from me.
 
jr8719 said:
As a US resident, how much can you win in a US casino tax free, out of interest?
Click to expand...
Technically all winnings are taxable but they'll only give you a form and ask for your ID at a certain threshold. At Foxwoods (CT) I think that amount is $1,999. Anything over that and you fill out the tax forms then and there.
 
US casinos are required to report winnings as low as $600 depending on the type of game you win:
  • $600 or more at a horse track (if that is 300 times your bet)
  • $1,200 or more at a slot machine or bingo game
  • $1,500 or more in keno winnings (minus the amount you bet)
  • $5,000 or more in poker tournament winnings (minus the amount you bet or buy-in price)
This is why one of my local dog track rooms sometimes has $599 HHJs - to avoid the reporting requirement.
 
allforcharity said:
Should be tax free in Canada , too.
Click to expand...
"American casinos are instructed to deduct 30% of jackpots exceeding $1,200 won by Canadian residents." As such, Duczak's (7th Place - CANADA) payout of $1,350,000 had $405,000 deducted for a net payout of $945,000. This made it 8th place Philippe Souki (8th place - UK) made more than him with $1,075,000 ($0 Tax).
 
VMR911 said:
"American casinos are instructed to deduct 30% of jackpots exceeding $1,200 won by Canadian residents." As such, Duczak's (7th Place - CANADA) payout of $1,350,000 had $405,000 deducted for a net payout of $945,000. This made it 8th place Philippe Souki (8th place - UK) made more than him with $1,075,000 ($0 Tax).
Click to expand...

This is what the casino is required to withhold. He can apply/submit to get it back. Worth the headache of an Amerisn tax lawyer for that amount of $.
 
jpietrella said:
Technically all winnings are taxable but they'll only give you a form and ask for your ID at a certain threshold. At Foxwoods (CT) I think that amount is $1,999. Anything over that and you fill out the tax forms then and there.
Click to expand...

unless something has changed since i actually played foxwoods tournaments, their cutoff is $5k. i even chopped a tournament once taking $4990 for first.
 
raynmanas said:
unless something has changed since i actually played foxwoods tournaments, their cutoff is $5k. i even chopped a tournament once taking $4990 for first.
Click to expand...
Hm, oh maybe. Last time I was there was about a year ago but last time I had played a tournament was at least a few years ago.
 
Schmendr1ck said:
US casinos are required to report winnings as low as $600 depending on the type of game you win:
  • $600 or more at a horse track (if that is 300 times your bet)
  • $1,200 or more at a slot machine or bingo game
  • $1,500 or more in keno winnings (minus the amount you bet)
  • $5,000 or more in poker tournament winnings (minus the amount you bet or buy-in price)
This is why one of my local dog track rooms sometimes has $599 HHJs - to avoid the reporting requirement.
Click to expand...
Is it possible to write off your loosing sessions to reduce your overall tax rate?
 
Schmendr1ck said:
US casinos are required to report winnings as low as $600 depending on the type of game you win:
  • $600 or more at a horse track (if that is 300 times your bet)
  • $1,200 or more at a slot machine or bingo game
  • $1,500 or more in keno winnings (minus the amount you bet)
  • $5,000 or more in poker tournament winnings (minus the amount you bet or buy-in price)
This is why one of my local dog track rooms sometimes has $599 HHJs - to avoid the reporting requirement.
Click to expand...
That $599 sounds dangerously close to structuring
 
Schmendr1ck said:
US casinos are required to report winnings as low as $600 depending on the type of game you win:
  • $600 or more at a horse track (if that is 300 times your bet)
  • $1,200 or more at a slot machine or bingo game
  • $1,500 or more in keno winnings (minus the amount you bet)
  • $5,000 or more in poker tournament winnings (minus the amount you bet or buy-in price)
This is why one of my local dog track rooms sometimes has $599 HHJs - to avoid the reporting requirement.
Click to expand...
I Ontario Canada at racetracks.
Payouts under 1000 are not recorded
1000+ and your name is recorded however no tax
10000+ and you need to go to the back room show ID and have your info recorded.. again no tax
I used to have a OLG license when I rode the thoroughbreds as a exercise jockey. the main reason for the records at the track was to both "limit" washing large amounts of monet (happened anyway) and to reduce collusion or the impression of with betting on horses. I was technically if I had a horse in a race I was associated with to bet on it to win, or in exotic bets to have my horse on top. it would be considered foul and my license could be at risk if I bet on the 5 horse when the one I had entered was the 2 for example. In Ontario many of the Casinos are primarily gov't run and thus the province nets the profits from the casino so it would be foul to also pay taxes on top of what is already a tax (ie gambling since you statistically lose)
 
Kentucky said:
Is it possible to write off your loosing sessions to reduce your overall tax rate?
Click to expand...
Yes, but only up to the amount that you've won.

When in Vegas, we keep all of our tournament buy-in receipts in the (unlikely) case that we bink taxable tournament. Also, if I ever hit the lottery I'm going to Vegas and freerolling on the government dime.
 
USA you can deduct gambling losses (up to your winnings) but it goes into deductions. You can’t just claim your net gambling income as income, you have to put all the winners in income, and losers in deductions. Prepared to be annoyed if your itemized deductions don’t exceed standard deduction, because those losses up until you exceed that standard deduction won’t reduce any tax liability.
 
In Norway poker winnings are taxed 28%. But there's also no real system for taxing poker because playing anything else than low stakes is illegal, and it's not really possible to deduct for losses and buyins and such as far as I'm aware.

A lot of the best players from Norway who pursues poker professionally has in fact done as Espen Jørstad and relocated to London.
 
Last edited:
Frogzilla said:
That $599 sounds dangerously close to structuring
Click to expand...
Probably is, technically, but they aren't the only place that does this, and it's unlikely they'll get in trouble for it.

They also frequently offer HHJs in the $1000-2000 range, and those definitely get reported. I've won a couple and gotten the 1099-MISC.
 
Poker Zombie said:
Soooooo planning for next year, I have 2 questions...
  1. How many days between the final table being made and the resolution?
  2. How long does it take to get UK citizenship? :whistle: :whistling:
Click to expand...

Having had several American friends who have done this, it takes a long time and is very difficult.
 

Create an account or login to comment

You must be a member in order to leave a comment

Create account

Create an account and join our community. It's easy!

Register

Log in

Already have an account? Log in here.

Similar threads

upNdown
2020 WSOP Main Event will have a live final table
Replies
7
Views
2K
legonick
L
Zmasterben
WSOP Chip Usage - Binion's Horseshoe
Replies
19
Views
9K
Zmasterben
Zmasterben
Rhodeman77
My friend and local pro made another deep run in WSOP
2 3
Replies
75
Views
10K
WedgeRock
WedgeRock
asian bino
Asian Bino's 2009-2020 Poker Resources from the Web, for your April perusal Part 1
Replies
2
Views
3K
asian bino
asian bino
snooptodd
WSOP Main Event to pay out top 1,000 player next year
2
Replies
30
Views
6K
Mental Nomad
Mental Nomad
Back
Top Bottom