The IRS has caught up with the online gambling market and will only likely get more serious about enforcing the payment of taxes on poker and other gambling winnings. Our advice is to get ahead of this and pay what you owe, so that the IRS does not have to come looking for you. Do I Have to Pay Taxes on Online Gambling Winnings? All countries and governments have their own online gambling tax policies and legislation so we need to look at this question from a global perspective.

After two exciting weeks, the 2019 World Series of Poker Main Event is over, and Hossein Ensan of Germany now stands as poker's latest Main Event champion after topping the field of 8,569 to claim the $10 million first prize.

Dario Sammartino of Italy took second for $6 million, Alex Livingston finished third to win a $4 million prize, and each of those making the final table earned at least $1 million for having done so.

Or did they?

As he does each year, federally licensed tax professional, poker player, and writer Russ FoxRoulette what happens if it lands on green. has shared with the poker world his annual look at the tax obligations faced by each of the nine players who made the WSOP Main Event final table. As Fox has shown before, when we say a player has won a certain, eye-popping amount for winning the Main or making the final table, the player's actual profit is often something less than the reported total thanks to having to pay income tax on the winnings.

In his article 'Location, Location, Location: The Real Winners of the 2019 World Series of Poker,' Fox looks at how the nine players' nationalities will affect their respective tax burdens, showing how almost all of them will be giving up a significant percentage of their winnings. In fact, when added up the total amount taken out of the nine players' prizes will exceed (once again) even the first-place prize.

We've been reporting on Ensan here at PokerNews for a long time, and indeed ever since we've known him he's always said he considers himself an amateur player (see, for example, this profile of Ensan from a European Poker Tour final table five years ago). Ensan again has reiterated his status as an amateur player in interviews both before and after his win this week.

While Ensan saying so fits well with his overall humble and amiable personality, Fox points out how in Germany his status as a professional or amateur is important when it comes to determining his tax obligation. A federal law passed in Germany two years ago 'ruled that professional gamblers must pay income tax on their net gambling winnings (less expenses),' and that 'amateur gamblers do not have to pay income tax on gambling winnings.'

As Fox explains, if Ensan does have to pay tax on his $10 million prize, he will owe more than $4.6 million in taxes to the Bundeszentralamt für Steuern, Germany's Federal Central Tax Office.

Among the other eight players, only seventh-place finisher Nick Marchington escapes having to pay tax on his $1.525 million prize since the United Kingdom does not tax gambling winnings. (This is one reason, Fox notes, why many German poker pros have taken up residence in the UK.)

Meanwhile, each of the others will be paying taxes, in most cases to their home countries and in the U.S. to home states as well. The Canadian Livingston will not have to pay tax in Canada on his winnings but will owe 30 percent of his $4 million prize to the US due to a tax treaty between the two countries.

He’ll likely show up for it for years to come.Sexton is a poker legend with more than $6.5 million in tournament winnings. It also made him eligible to play in the annual WPT Tournament of Champions. Plus, he has titles from the biggest poker events in North America, including a bracelet.He traveled regularly from to and everywhere the WPT would go around the world. It’s the type of event that has Sexton’s name all over it. World poker tour female hosts.

Fox explains as well how ninth-place finisher Milos Skrbic would have been taxed differently if he lived in his native Serbia, but he currently lives in California. In either case, though, Skrbic would owe a great burden — calculating it as a California resident shows he will owe the most of all the players, percentage-wise (about 47.4 percent), when it comes to paying taxes on his $1 million prize.

Here is how all of those figures break down for the nine players making the final table:

PositionPlayerPrizeTax OwedPrize After Taxes
1stHossein Ensan$10,000,000$4,606,469$5,393,531
2ndDario Sammartino$6,000,000$2,572,350$3,427,650
3rdAlex Livingston$4,000,000$1,200,000$2,800,000
4thGarry Gates$3,000,000$1,050,813$1,949,187
5thKevin Maahs$2,200,000$870,729$1,329,271
6thZhen Cai$1,850,000$706,679$1,143,321
7thNick Marchington$1,525,000$0$1,525,000
8thTimothy Su$1,250,000$491,150$758,850
9thMilos Skrbic$1,000,000$474,463$525,537

Taxes On Casino Winnings Calculator

If Ensan does have to pay taxes on his winnings, the total collected from all of the players adds up to $11,972,653 taken out of the $30,825,000 in prizes for the top nine finishes. That's just under 39 percent, and even more than the $10M first-place prize.

For further details from Fox’s analysis, check out his article.

Be sure to complete your PokerNews experience by checking out an overview of our mobile and tablet apps here. Stay on top of the poker world from your phone with our mobile iOS and Android app, or fire up our iPad app on your tablet. You can also update your own chip counts from poker tournaments around the world with MyStack on both Android and iOS.

  • Tags

    WSOP2019 WSOPWorld Series of PokertaxesHossein EnsanDario SammartinoAlex LivingstonGarry GatesKevin MaahsZhen CaiNick MarchingtonTimothy SuMilos SkrbicRuss Fox
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    Dario SammartinoHossein EnsanGarry GatesZhen CaiAlex LivingstonMilos Skrbic

Taxes On Slot Machine Winnings

Katie Callahan

Tax burdens can cut poker winnings in half. And that’s exactly what they’ll do, even in tournaments as large, and with as big a payout, as the 2016 World Series of Poker final table.

Then, once you move into tournament backers who receive a part of the action from investors to lower player risk, players only see a portion of their winnings.

In a post titled, “The 2016 Real Winners of the World Series of Poker,”Russ Fox of Clayton Financial and Tax in Las Vegas, divvies out the winnings, based on how much is taken out, location and what the player will receive after taxes.

Taxes
PlayerLocationPlacePercentage LostWinnings Before TaxesWinnings LostEstimated total
Qui NguyenLas Vegas, NV1st41.51%$8,005,310$3,324,157$4,681,153
Gordon VayoSan Francisco, CA2nd51.46%$4,661,228$2,398,800$2,262,428
Cliff JosephyLong Island, NY3rd48.40%$3,453,568$1,674,568$1,779,000
Michael RuaneMaywood, NJ4th45.75%$2,576,003$1,178,525$1,397,478
Vojtech RuzickaPrague, Czech Republic5thexempt, flat 15% income tax$1,935,288$290,293$1,644,995
Kenny HallaertHansbeke, Belgium6th0% (no tax on gambling wins)$1,464,258$0$1,464,258
Griffin BengerToronto, Ontario, Canada7th30% withheld for U.S. income tax$1,250,190$370,057$875,133 (can file return to recover losses)
Jerry WongMargate, Florida8th38.16%$1,100,076$419,776$680,300
Fernando PonsPalma, Spain9th45%$1,000,000$449,584$550,416

Here’s a table from the post:

Amount won at the final table$25,445,388
Tax to IRS$8,108,024
Tax to Franchise Tax Board (CA)$623,262
Tax to Agencia Tributeria (Spain)$449,584
Tax to New York Dept. of Taxation and Finance$422,752
Tax to Finanční Správa (Czech Republic)$290,293
Tax to New Jersey Division of Taxation$215,845
Total Tax$10,109,760

Be sure to complete your PokerNews experience by checking out an overview of our mobile and tablet apps here. Stay on top of the poker world from your phone with our mobile iOS and Android app, or fire up our iPad app on your tablet. You can also update your own chip counts from poker tournaments around the world with MyStack on both Android and iOS.

Do I Have To Pay Taxes On Poker Winnings

  • Tags

    2016 World Series of Poker2016 WSOPLas VegasPoker PlayersPoker TaxesPoker TournamentsWSOP
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