Poker pros under pressure as U.S. tax reform targets gambling losses

A recent tax reform in the United States is raising serious concerns among professional poker players. New federal regulations limit the deductibility of gambling losses to 90% of annual winnings. As a result, players may be taxed on "phantom income" even in years where they break even or suffer slight losses.

This change has been met with strong criticism, especially from high-volume professionals who operate on tight margins. Their business model relies on long-term profitability with inevitable short-term swings, and the new rule could lead to unsustainable tax liabilities even in modestly profitable years.

Industry groups and poker associations are calling for amendments to the law. Many experts argue that the rule could drive professionals toward unregulated markets or prompt them to relocate to jurisdictions with more favorable tax systems.

This policy shift could profoundly impact the structure of professional poker in the U.S., affecting not only individual players but also live and online poker ecosystems, sponsorships, and tournament economics.