A new tax rule applying a 10% levy on gross gambling winnings is creating serious concern throughout the gambling sector, according to Ray Kondler, CPA and managing partner of Kondler & Associates. Speaking on the PokerNews Podcast, Kondler said the change is affecting not only poker players, but virtually every type of gambler.

Kondler described the measure as a harsh wake-up call for the industry, noting that its impact reaches sports bettors, slot players, and tournament professionals alike. In his view, the rule is far broader than many people initially realized.

Pressure Already Showing on the Tournament Scene

According to Kondler, the new tax structure is already influencing player behavior on the tournament circuit. He said some high-stakes players avoided major buy-in events earlier this year because they feared the tax consequences of a deep run or a win.

Rather than chasing the biggest prizes, some players reportedly shifted into smaller events to reduce the potential burden. Kondler argued that the people behind the legislation likely did not fully understand how disruptive the rule could become, not just for players, but for casinos and the wider gambling economy as well.

Although efforts are underway to revise or repeal the measure later in 2026, the rule remains in effect for now. Kondler also suggested that the government may have underestimated just how much this new tax policy will affect tax filings across the country. He said his firm has already seen a surge in inquiries as gamblers try to understand the consequences.

He added that Kondler & Associates has been in contact with Nevada Representative Dina Titus, who has been involved in efforts to change or correct the deduction rules tied to the law.

Keeping Records Is Now More Important Than Ever

Kondler stressed that one of the most important steps professional gamblers can take under the new system is maintaining complete and accurate records of all expenses.

For players filing as professionals, using a Schedule C business return can open the door to valuable deductions. Travel costs, meals, mobile phone bills, and even housing expenses related to extended stays for tournament play may all become increasingly important when trying to offset tax exposure.

Kondler emphasized that gamblers now need to save every receipt and document every expense carefully. Under the previous structure, a player who won and lost the same amount could often balance things out. But under the new rules, gross winnings may trigger tax liability even when net results are far less favorable.

In short, deductions may now play a crucial role in reducing the damage caused by the new tax framework.

Help Available for WSOP Players

To help players navigate the new rules, Kondler & Associates will once again operate an information booth outside the main registration area at the World Series of Poker.

Kondler said the firm has maintained a presence there for years and will continue offering guidance throughout the series. He encouraged players with questions to stop by and seek assistance, adding that his team enjoys helping members of the poker community understand complicated tax matters.

Industry Watching Closely

As debate around the new tax rule continues, many in the gambling world are watching closely to see whether lawmakers step in with changes. Until then, the 10% gross gambling tax is expected to remain a major topic of concern for players, tax professionals, and casino operators alike.