Poker Players Push Back Against "Phantom Income" Tax in the US

American poker players are continuing their fight against an amendment to the country's tax code that would lower the deduction threshold for gambling losses from 100% to 90%. This change could create "phantom income," forcing players to pay taxes even with a zero or negative bankroll. The changes are part of the "One Big Beautiful Bill," signed by Donald Trump in July 2025.

Poker players have been fighting the tax amendments since last year. Hall of Fame member Erik Seidel has said they are forcing him to significantly cut back on tournament participation. UFC head Dana White also appealed to Trump to repeal the changes. In addition, a recent study concluded that the new rules will reduce the annual volume of sports betting by $18 billion.
Now several more speakers have taken part in a roundtable with representatives of the U.S. Internal Revenue Service (IRS): poker players Todd Witteles, Sara O'Connor and Katie Stone, poker content creator Joshua "PLO Professor" Thatcher, gambling and poker tax specialist Ray Kondler and others.

Witteles argued for creating separate tax structures for poker, sports betting, casino gambling and other games of chance. He also emphasized that players should not be taxed if they can prove they recorded a negative bankroll or broke even.

Sara O'Connor stated that the amendments will hit not only high-stakes professionals but also amateurs:
"I'm an amateur and I play low stakes, like most poker players in America. A player like me might come out ahead in a few sessions, lose in a few more, and end up finishing the year even or slightly up. That's normal. That's how poker works. There are wins, losses, variance and volume. This rule punishes volume and honesty. It punishes citizens who choose legal forms of leisure."

There are also opponents of the tax amendments among government officials. Congresswoman Dina Titus once again spoke out for repealing these changes and recommended that the Treasury and the IRS implement a system that would reduce the bureaucratic burden and provide clear clarification of the rules for both casino operators and players. She was supported by Democrat Steven Horsford and Republican Max Miller.

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