Accountants around the U.S. have been notified of a new tax law which requires casinos to hold back 25% of any poker tournament payout $5,000 or greater for taxes.

Specifically, taxes must be withheld from “Proceeds of more than $5,000 from a wager placed in a sweepstakes, wagering pool, or lottery,” with some exceptions.Obviously, a poker tournament amounts to a wagering pool, as players “pool” their buy-ins to create the kitty from which the prizes are drawn.

So, all you weekend poker player out there who find yourselves in the fortunate situation of having emerged victorious in a poker tournament out in Vegas, Atlantic City, or Biloxi, you had better hope you don’t win just over $5,000.If, say, you win $5,500, you’ll only go home with $4,125.You’d be better off winning $4,500, as the casino is not required to take anything from that.

Tight Poker Staff

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Tight Poker Staff

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For nearly two decades, we’ve provided the best in class for poker site reviews, top online poker bonuses, strategy tips, poker news, and exclusive free poker content.  Consisting of a team of poker and gambling experts, we deliver the best online poker brand experience for players of all levels, from the fish to the sharks.
For nearly two decades, we’ve provided the best in class for poker site reviews, top online poker bonuses, strategy tips, poker news, and exclusive free poker content.  Consisting of a team of poker and gambling experts, we deliver the best online poker brand experience for players of all levels, from the fish to the sharks.