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Poker Players Must Pay Sports Pro Tax in Spain

Poker Players Must Pay Sports Pro Tax in Spain
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Cameron Dhaliwal Pokerlistings Author
  • Fact Checked by: PokerListings
  • Last updated on: August 26, 2023 · 3 minutes to read

Spain has shown down a hand that has baffled the poker community worldwide, as they now classify poker players as athletes for taxation reasons. The significant shift in taxation significantly impacts the poker community, especially the high roller circuit, which has seen Triton and European Poker Tour events frequent Casino Barcelona.

With the upcoming PokerStars EPT Barcelona coming up, questions are being posed as to what the actual tax rates are for poker players, what happens if you win, and how that money gets taxed.

The Tax Law Change

This law change occurred after the Spanish Ministry of Finance decided to put poker players in the same bracket as professional athletes. This means that all poker players, regardless of whether they are recreational players, aspiring semi-pros, or genuine full-time pros, will be subject to taxation.

This has also led to the Spanish government classifying poker as a sport and not as a game of skill. This could also lead to future developments around the poker industry in Spain and beyond, but it has yet to be seen whether these movements will be positive or negative.

The change is a huge shift from the previous tax code, which allowed players to gain prizes without any implications for not reporting them. Now, the Ministry of Finance has spotted this as a deficiency in the tax code and has also looked into a modification to include smaller premiums in the overall tax calculation.

What Are the Tax Rates?

The tax changes extend to all professional poker, chess, billiards, and card players within the Spanish border. The rule extends to players who live outside of Spain but compete in the game within the country.

The tax rate goes from 19% to 24% for players who reside within the European Economic Area (EEA) and 24% for players who live outside of the EEA.

What Happens Next to Poker Players?

The tax change is sure to be a huge blow to poker players. To view them as sportspeople and their earnings as akin to a footballer earning a salary is outright unfair. If a player has a downswing during EPT Barcelona but recoups some losses with a big final table finish, they will get taxed on an overall losing trip. This kind of situation will deter a lot of high and mid-stakes grinders who can find elsewhere to play.

A loss of poker players in Spain would be incredibly detrimental to the country’s already thriving poker scene. The new tax law could push players to shift to other tournaments, even with EPT Barcelona coming up. EPT Barcelona has routinely been one of the most popular events on the calendar, with some of the biggest poker tournaments in Europe on the schedule and held in one of the best venues in Casino Barcelona, just a stone’s throw from the city’s famous beach.

What Is Next for Spanish Live Poker?

The new tax shift in Spain represents a significant moment in their poker industry but also has ripple effects across Europe. The government might deem this as a necessary move to maintain fair taxation, but a lot of experts view this a net negative on the poker community. As EPT Barcelona rolls around the corner, it is going to be particularly interesting to see how this tax change impacts the number of players who travel to the series and whether this will start an overall shift in the poker industry across Spain.

UPDATE: Official comments from Pokerstars:

There will be no changes to the format and structure to this years’ EPT Barcelona.

After reviewing the news about taxation in Spain, Casino Barcelona have confirmed that no tax will be deducted from payouts at EPT Barcelona.

As laws vary depending on the jurisdiction, it is the responsibility of the individual player to adhere to the laws of their respective region.

Therefore, we suggest that players inquire with their local tax authority regarding their responsibility of claiming winnings.

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