WSOP 2025 – Foreigners and Taxes

Countries That Don’t Tax Poker Winnings

Several countries in the world do not consider money made through gambling as income:

Notice that almost all the countries listed are European – the lone outliers being Australia and Canada.  It’s important to note that we are talking about individual wins here – if gambling is your career and primary source of income, you will be taxed at varying rates, depending on the country you live & file taxes in.
For example, Germans where gambling is not their primary source of income pay nothing on gambling winnings – but if it’s your career, you can pay up to 90% tax on your yearly income.  Conversely, Italy not only doesn’t charge you tax on individual winnings, but professional gamblers also pay no tax on their income.

The interesting country is the United States.  Professional gamblers end up paying less than 10% tax on their yearly income when they file with the IRS – but individual wins are taxed differently – and immediately.

US Tax Rules Pertaining to Poker Wins

Any prize won at the WSOP greater than $5,000 is immediately reduced to 70% of the payout to the player, and comes with it a tax form – Americans get a W-2G form while foreign nationals get a 1042-S.

Several countries have tax treaties already established with the US that exempt their citizens from paying this 30% fee up front – they include a large portion of the European Union, Russia, the UK, Japan and South Africa to name a few. 

Players from these countries will need to have a W-88EN form filled out and provided to the cashier to collect 100% of the win. Players from any other country in the world – Canada being the big one seeing as they have the 2^nd most bracelets won next to the US – will need this 1042-S form, completely and fully filled out including a ITIN (Individual Taxpayer Identification Number) to have a chance at retrieving monies withheld. 

It’s also recommended that you have a gambling log filled out, documenting ALL your play, including your losses in American casinos.

Foreigners Filing Taxes in the US

The only way foreigners not covered by a tax treaty can recover their winnings is by filing taxes in the US.  This requires you to complete a 1040NR – a US Non-Resident Tax Return, and will need the following documentation to go with it:

• All your 1042-S forms filled out
• Your ITIN provided from the casino
• Your passport
• Your gambling log showing all your wins and losses

The IRS allows foreigners to back file up to three years – provided you have individual 1042-S forms from those years and a gambling log, outlining your wins and losses.

Gambling Logs – What to Do and Not to Do

Mentioned several times now, gambling logs are really the key piece to a successful claim by someone outside of the United States. These gambling logs will enable you to show money gambled and lost which can be used to offset your large win.  The thing is – since there are going to be prepared by the player, the IRS can audit them substantially.

At a bare minimum, poker players should be detailing all their play in the US, recording this information:

• Date
• Type of Play (Poker players – cash session or tournament)
• Amount Wagered
• Amount Won
• Location of play, including full address
• Players with you while at the gambling establishment

Money withdrawn for the purposes of playing should be included – this could be ATM receipts or wire transfer forms.  Your receipts from playing must be included as well, and if you can, photo documentation of you at the table can’t hurt. Getting the dealer and put bosses’ names isn’t a bad idea either – anything relevant to you playing that can prove to the IRS that you were there; you were gambling; and what you lost.

This gambling log should be updated as you play – and not prepared after the fact.  You don’t need to outline big hands won or lost – but if you are playing cash and move tables, this break should be documented as it could be considered a new session by the interpretation of the IRS.

Hastily prepared logs have been dismissed in the past, and without a gambling log with your filing, your chances of recovering your withheld winnings are lost.  So, don’t wait until the last minute when the IRS requests an audit of your filing to create a log.

Filing Tax Returns

Most people filing tax returns will go one of two routes – they’ll either complete the return themselves using a website or tax software, while the balance will utilize a tax return company like H&R Block. This works fine for Americans filing tax returns in the US – but does not work for foreigners filing in the US on a different tax return form.

Companies have popped up around the world who specialize in assisting gamblers and poker players with filling out and filing these tax returns. For a fee – a few hundred dollars from some found – players can provide the information to them and have them file the return with the IRS. Not cheap compared to companies processing more standard returns, the specialized nature of these returns does require specialized knowledge.

Finally, the IRS recommends players file by June 15^th for the year prior, although there are forms to gain an extension to this deadline.  Adhering to it should put the filer in a more favorable light – anything you can do helps your cause.

The WSOP Main Event is undoubtedly the biggest, and richest poker series in the world every year, but also comes with headaches for players alike when it comes to being taxed on their winnings. Foreigners from countries without treaties face even more hurdles as they will need to fight for whatever they can well after the series is over, and then, there are no guarantees. So, if you are playing in the World Series, be sure you understand the rules for what will happen when you win it big in Sin City.