Rakeback.com - Don't play poker without it

Professional Gamblers Can Now Deduct Business Expenses

By Ian Hiaring, Rakeback.com Poker News Staff Writer

poker-taxIn January, the U.S. Tax Court made a change to a decades-old opinion regarding professional gambling, and expenses that can be deducted to those who declare themselves professional gamblers.

According to the court, expenses associated with gambling can now be written off. The language of the law essentially was changed to define gambling as a business, and as someone who chooses gambling as their profession, that person would be able to deduct business expenses, not unlike any other business.

The case that brought about the change came from a California gambler who listed expenses on his 2001 tax return for things such as automobile and travel, fees for race handicapping information, and other research regarding his profession, gambling.

The change in the tax law will be welcomed by high-end gamblers, but won’t affect the casual player who might think about writing off a plane ticket to Las Vegas as a “business expense”.

“While this is a victory for the professional gambler, this doesn’t affect very many gamblers at all,” Judy Patterson, the Senior Vice President and Executive Director of American Gaming Association in Washington D.C. said.

“To qualify, gambling really has to be a full-time activity that is the person’s principal source of livelihood,” Patterson said. “It’s a pretty high standard that few will be able to meet.”

There’s been no word on whether or not a professional gambler could write off a tournament entry fee, or rake collected by a casino as an expense, but it’s an interesting angle that may become an issue with the change in the tax law.

How Much Cash Back Will I Earn?

Rakeback increases your winnings from online poker as you continually earn money back from every raked hand or tournament you play.

Many players earn a living wage from rakeback alone. Use the calculator below to estimate the size of payments you’ll get over a given period of time. The calculator will compute your expected daily, weekly, and monthly cash back depending on the stakes and tables you input.

Calculate Your Rakeback

Top Poker Room Recommendation

Black Chip Poker

  • 27% Rakeback
  • $1000 Sign-up Bonus
  • Bonus Code: RBCOM



  • 11 Online Poker Tools to Boost Your Winrate

    August 20th, 2015

    First up, you probably know them already – PokerTracker and Holdem Manager are by far the most popular poker tools – but may not have heard the two companies recently merged.

    Read more…

  • Where are the Softest Poker Games Online in 2017?

    April 26th, 2017

    “I shouldn’t say this on a poker forum but sng 2.0 acr is about as free money as I’ve seen in poker in a long time. Not sure how long it’s going to last but right now as it’s new people r punting hard.”

    Read more…

  • Lottery Sit & Gos – Where to Play

    August 20th, 2015

    A mixture between tournament poker and gambling, the ‘Lottery Sit and Go’ format is popular with recreationals and regs alike – attracting net depositing players

    Read more…

  • Fast-Fold Poker – The Fastest Poker Online

    January 7th, 2015

    Many of Rakeback.com’s partner sites offer Fast-Fold format poker tables. These high speed poker games eliminate the need for table selection and allow players to grind many more hands/hour thanks to a ‘quick fold’ option. This in turn boosts rakeback earnings.

    Read more…

© 2015 Rakeback.com