A significant change in US gambling tax laws is affecting the poker world, with Hall of Famer Erik Seidel suggesting it might greatly curtail his career. The seasoned professional, renowned as one of the greatest players, indicates the new rule could render playing tournaments full-time too expensive.

Erik Seidel Plans Smaller Poker Schedule After Tax Law Shift

The tax revision, part of President Donald Trump’s major economic initiative this year, will take effect in 2026. The new regulations will allow gamblers to deduct 90% of their annual losses instead of all. Although this might initially seem minor, poker professionals argue it alters the financial calculations of tournament play.

Seidel, who has earned over $48 million in live tournaments and secured 10 World Series of Poker bracelets, notes that the rule might require players to pay taxes even in years when they break even or incur losses, as reported by PokerNews. Practically, a player who wins significant sums but spends as much on tournament entries could still owe taxes on money that wasn’t actual profit.

While Seidel hopes for a legislative reversal of the provision, he acknowledges that a resolution is uncertain. Therefore, he plans to significantly reduce his buy-in exposure if the rule remains. Instead of frequently entering $10,000 events and top high rollers, he will concentrate on smaller tournaments, still appearing occasionally at major events like the WSOP Main Event.

Poker Leaders Warn New Tax Law Could Push Pros Out of the Game

This issue extends beyond one player’s plans. Seidel cautions that young professionals, who dedicate years to improving with aspirations to excel in tournaments, might be excluded from the game. He also expresses concern that the policy might drive some players to resort to dubious tax strategies, a result he believes benefits no one.

Other prominent figures share these worries. Phil Hellmuth has criticized the rule, while Nevada politicians, including Representative Dina Titus, have attempted to enact legislation to restore full loss deductions. Although there is cross-party support, efforts to incorporate a fix into crucial bills have not yet succeeded.

Industry observers fear the ramifications could extend to casinos, tours, and online platforms. High-stakes tournaments might struggle to attract American players, sponsorship and backing deals could diminish, and overall tax revenue might decrease as top professionals play less or retire. If Congress does not revisit this issue, poker in the United States could undergo significant changes within a year, with even its most renowned players withdrawing from the game.

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• Source: SCCGManagement.com