button in SafariRay Kondler CPA: Inside the New 10% Gross Gambling Tax Rule
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A new 10% tax on gross winnings has triggered a massive "rude awakening" across the gambling industry. According to Ray Kondler, CPA and managing partner of Kondler & Associates, the impact stretches far beyond poker tables.
"The Big Beautiful Bill is not great for gamblers," Kondler said during an appearance on the PokerNews Podcast. "It’s not even just poker players; it’s sports bettors, it’s any type. It’s the old lady playing the slot machines. It affects every gambler."
Impact on the Tournament Circuit
The financial fallout is already surfacing on the tournament circuit. Kondler noted that high-stakes fields saw noticeable absences earlier in the year as players actively avoided the tax trap.
"Big-time players didn’t play in the big main events," said Kondler. "They played in the smaller events instead because they know if they win, they’re going to have a problem with taxes.
"The person who put it in [the Bill] didn’t realize the effect it would have on anything. Not just for players, but for casinos too. It’s going to be a big issue if nothing gets changed."
While lobbying efforts are underway to secure a possible repeal later in 2026, the law remains active on the books.
"Whatever the IRS budgeted that they were going to come in from this revenue, I think that’s vastly understated. It’s going to affect every return that we do. Our phone is ringing off the hook because it affects everybody."
Kondler also revealed that they've had conversations with Nevada Rep. Dina Titus, who has been heavily involved in trying to either overturn or fix the deduction situation. PokerNews's Chad Holloway sat down with Rep. Titus earlier this year to discuss those efforts and where things may end up.
Record-Keeping and Deductions
For professional players, one of the most important things they can do is keep records of all their expenses while playing. For those flying under a professional designation, filing a Schedule C business return unlocks critical tax deductions during tax season.
"If you’re going to get paid tax on 10% of your gross, you better make sure you keep all your expenses"
"If you’re going to get paid tax on 10% of your gross, you better make sure you keep all your expenses and all your receipts," says Kondler.
"It’s a business. So you can take all your travel, all your meals, your cell phone, your rent when you’re renting a house, because if you rent the house or whatever to stay in, that’s deductible because it’s in office."
Under the new rules, tracking every dollar is vital.
“It used to be that if you won $100,000 and lost $100,000, it would zero out. But now, if you win a lot more and your buy-ins are only $90,000, you had better make sure you have the other $10,000. You're gonna need every deduction you can get."
Kondler & Associates Helping Poker Players
Kondler & Associates will maintain their dedicated informational table directly outside the main registration area at the World Series of Poker to help players navigate the changes.
"We've had a booth there for many years now, and we'll be there every day," Kondler said. "We love what we do. To us, it's not work, it's fun. All our players are good players and great people, but they're all unique in their own way.
"So if you're down at the World Series, come down and ask a question. We’d be glad to assist in any way we can."
Players can also contact the firm directly via Kondlercpa.com.
