Tax Law Demands a Quarter of Poker Winnings

Casinos and card rooms paying out tourney winnings are going to have a new job - holding back taxes, thanks to the new tax code that will go into effect in March of next year. The new code will require these establishments to hold back 25% of the winnings of any poker player if they make $5,000 or more for tax purposes. This is a US tax law and only applies to card rooms and casinos on US soil. Part of the reason behind the new law is that tax court rulings hold poker to be gambling and not a skillful activity, as far as taxation is concerned.