News Legality News

Erik Seidel Scales Back Poker Schedule as Poker Tax Changes Take Effect

Erik Seidel Scales Back Poker Schedule as Poker Tax Changes Take Effect
Image
Iva Dozet News Editor
Fact Checked: PokerListings
  • Updated: April 24, 2026
  • Read time: 2 min

Roughly nine months after the One Big Beautiful Bill (OBBA) became law, the poker world is still trying to wrap its head around what the new gambling tax actually looks like. With the World Series of Poker a few short weeks away, poker legend Erik Seidel sat down for a feature piece with CNBC to discuss how OBBA forced him into semi-retirement.

Here’s what of poker’s biggest names is saying about the situation and why he’s already made the decision to pull back.

What the One Big Beautiful Bill Did to Live Poker

We’ve discussed the repercussions OBBA would have on 2026 poker season before. The real problem for poker players isn’t that gambling winnings suddenly became taxable. They already had their respective tax bracket even before OBBA.

The problem is that, since January 1, 2026, gamblers are able to deduct only 90% of their losses against their winnings on their federal return, instead of the full 100% up to the amount won. That is what creates the so-called “phantom income problem” — a player can break even, or even lose money overall, and still end up owing tax on paper income that never really existed.

Maria Konnikova gave a pretty clear explanation last year:

Maria Konnikova

Imagine I have $100,000 in winnings in a year from poker and I played $200,000-worth of tournaments, for a net win of $0. In past years, I’d have zero poker income—no taxes, because I didn’t actually make a cent. Under this bill, my losses are capped at 90%. So, I can only report $90,000 in losses—and I have to pay taxes on a phantom $10,000 that I don’t actually have! I’m being charged a penalty for choosing to play to begin with.

The Reasoning Behind Seidel and his Semi-Retirement

That is where Erik Seidel and his semi-retirement plan come in. In a feature piece he did for CNBC this week, the poker pro admitted he chose to semi-retire this year because the new gambling tax for 2026 makes his usual schedule hard to justify.

Erik Seidel
Erik Seidel

Seidel, who’s sat at the most coveted poker tables ever since his runner-up finish in the 1988 WSOP Main Event, is planning virtually no “high-roller” events this year. As he told CNBC:

Erik Seidel

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 added that the new rule creates a situation that is “really untenable,” even for top professionals.

Seidel isn’t a fringe grinder trying to scrape together a schedule. He’s still one of the most accomplished tournament players in poker history and if a player with his résumé and bankroll is openly saying the numbers don’t make sense anymore, that tells you this isn’t something to take lightly.

Seidel also told CNBC he’s going to be actively scaling down this year, but as he said, at the end of the day, he can afford to do that:

Erik Seidel

I can afford to not play as much, but it’s a devastating thing for people who are much younger than me.

While Seidel remains among the few players to make the tough call and step back from the game for now, the US Congress isn’t completely blind on this issue. A little after the OBBA passed, a few house representatives committed to restoring the 100% deduction by the end of 2025 but as of April 2026, no amendments have made it to the floor for a vote.

Image
Written By: Iva Dozet News Editor

Recommended