Poker legend and 10-time WSOP bracelet winner Erik Seidel did a mainstream interview with CNBC, detailing how the Big Beautiful Bill forced him to be semi-retired in 2026.
Donald Trump’s legislation caused professional gamblers, including poker players, to deduct only 90% of their gambling losses to offset gambling income. In previous years, they were able to deduct 100% of total losses.
Given the fine margins of poker, especially in the high-volume and high-stakes communities, many players have been forced out of the game until the law changes.
How the Big Beautiful Bill affects poker players
The Big Beautiful Bill caused shockwaves through the poker community and has punished high-volume and high-stakes players. Players operating by grinding thin edges throughout the year will now see themselves get taxed on what’s known as “phantom income”.
We’ll use a few examples on how a number of players would be negatively affected by the new provision in the Big Beautiful Bill.
Player Examples
Player A: $2,000,000 in poker winnings, $2,100,000 in poker losses for a $100,000 loss in 2026.
Player B: $600,000 in poker winnings, $550,000 in poker losses for a $50,000 profit in 2026.
Player C: $250,000 in poker winnings, $250,,000 in poker for a $25,000 loss in 2026.
Big Beautiful Bill tax implications
Player A, a slightly-losing high-stakes reg, could only deduct $1,800,000 of their poker losses (90% of $2,100,000), meaning they would owe taxes on $200,000 worth of phantom income. If we use a rough estimate of paying 25% on income tax, Player A could owe an additional $50,000 in taxes, despite losing $100,000 in 2026, leading to a $150,000 loss.
Player B, a slightly-winning midstakes grinder, could only deduct $495,000 of their losses, meaning they would have to owe taxes on $105,000 of “phantom income”, despite making just $50,000 in profit. With the 25% estimate, they would be required to pay $26,250 in taxes, leaving them with only $23,750 in take home profit for the year.
Player C is a breakeven casual low-to-midstakes reg. They’ll be able to claim just $225,000 of their gambling losses, meaning they’ll have to claim $25,000 in “phantom income”. Despite not making a penny, they’ll still have to pay the IRS $6,250, thanks to the Big Beautiful Bill.
Erik Seidel: Sticker shock is coming
Erik Seidel is one of the few poker players that has truly stood the test of time. Seidel has seen it all, finishing second in the 1988 WSOP Main Event to winning the $50,000 Super High Roller at WSOP Paradise in 2023 for his 10th career WSOP bracelet. Only Phil Ivey and Phil Hellmuth have more.
Seidel claims he’s not playing many tournaments over $10,000 this year, thanks to the potential implications of the Big Beautiful Bill.
“The margins are really, really thin. If you’re a professional poker player, you’re not even guaranteed to have a profit at the end of the year,” he told the CNBC program Make It.
“This just creates a situation where it’s really untenable. Even the elite players, they can’t overcome it.
“I’m going smaller because I don’t want the numbers to get too high if I’m only able to deduct 90%.
“I’ve just been really taking it easy and avoiding $10Ks and above, which are the tournaments that I normally play, and not traveling as much this year.
“I can afford to not play as much, but it’s a devastating thing for people who are much younger than me.”
Seidel is also confident that once professional poker players and gamblers see the true effects on their tax bill next year, they’ll stop playing in 2027 and beyond.
“I’m telling clients to basically run their numbers from 2025 and limit their gambling losses to 90% and assume that was your 2026 number to see what the impact would be. A few have been very surprised. Not in a positive manner.
“You’re not really going to see people realize, ‘Oh God, this is going to be bad’ until the tax man starts knocking.”
Seidel has only played sparingly in 2026, cashing seven tournaments. Of his cashes, only two have been in a $10K tournament, which happened during the first week of the year. He did not travel to WSOP Europe to play the Main Event.
