US Gambling Tax Change Leads Erik Seidel to Consider Cutting Back on Poker
Summary
A recent change to US gambling tax rules — part of President Donald Trump’s economic plan — will limit deductions on gambling losses to 90% of annual losses instead of allowing full deductions. The rule takes effect in 2026 and has prompted Hall of Famer Erik Seidel to say he will scale back his involvement in high-stakes tournaments. Rather than regularly entering $10,000 buy-ins and elite high-roller events, Seidel plans to concentrate on lower-stakes tournaments while still making occasional appearances in major events like the WSOP Main Event.
The shift alters the tax maths for pros who often break even across a season or invest large sums to chase big scores. Seidel and other industry figures warn the change could push younger pros out of the game, shrink American fields at big events, reduce sponsorships, and encourage risky tax behaviour. Lawmakers including Representative Dina Titus have tried to restore full loss deductions, but fixes have so far not passed.
Key Points
- The new rule (effective 2026) restricts gambling loss deductions to 90% of a player’s yearly losses rather than 100%.
- Erik Seidel — with over $48m in live tournament winnings and 10 WSOP bracelets — says the change may force him to reduce high buy-in play.
- Seidel plans to lower his buy-in exposure, focusing on smaller tournaments and only occasionally entering top events.
- Industry leaders fear the rule could deter young professionals, reduce US participation in big-money events, and shrink sponsorship and tour revenues.
- There are efforts by some politicians to restore full deductions, but attempts so far have failed to secure passage.
- The tax change could have wider knock-on effects for casinos, tours and online platforms if top players play less or quit.
Why should I read this?
Short version: if you care about poker — playing, following or running events — this law could change the game. It’s not just dry tax talk; it affects who turns up at big tournaments, how young players make a living, and whether sponsors keep writing cheques. We read it so you don’t have to — but you should know what’s coming.
Author’s take
Punchy and to the point: this is a significant policy tweak with real-world consequences. For pros who grind tournaments for a living, the change alters risk and reward. If you follow the poker scene, the detail matters — Seidel scaling back is a canary in the coal mine.
Context and relevance
This story links tax policy to the economics of professional poker. It highlights how seemingly small changes to deduction rules can distort incentives, push skilled entrants away, and shrink the ecosystem — from live fields and sponsorships to casino revenue and tax receipts. For industry watchers, players and policymakers, the debate over a fix is ongoing and could reshape US poker within a year.