IRS Seizes $9million from Poker Tournament Elite
**Breakdown of Tax Payments for Top 9 WSOP Main Event Final Table Participants (2025)**
The World Series of Poker (WSOP) Main Event final table in 2025 saw a total prize pool of $31,250,000, with the distribution of winnings significantly impacted by the tax regimes of the winners' home countries and U.S. withholding tax.
### Total Winnings and Taxation
The total prize pool at the final table was $31,250,000, with an estimated total tax paid of $10,054,387, resulting in an effective tax rate of 32.38%.
### Prize and Tax Table by Player
The table below illustrates the before-tax and after-tax prizes for each player, along with any relevant comments:
| Place | Player | Before-Tax Prize | After-Tax Prize | Comments | |-------|------------------|------------------|-----------------|---------------------------| | 1 | Michael Mizrachi | $10,000,000 | $6,032,745 | U.S. tax applies | | 2 | John Wasnock | $6,000,000 | $3,790,106 | U.S. tax applies | | 3 | Braxton Dunaway | $4,000,000 | $2,524,527 | U.S. tax applies | | 4 | Kenny Hallaert | $3,000,000 | $3,000,000 | 0% due to residence in a tax treaty country | | 5 | Luka Bojovic | $2,400,000 | $2,400,000 | 0% due to residence in a tax treaty country | | 6 | Adam Hendrix | $1,900,000 | $1,202,000 | U.S. tax applies | | 7 | Leo Margets | $1,500,000 | $795,000 | Additional tax from Spain | | 8 | Jarod Minghini | $1,250,000 | $768,447 | U.S. tax applies | | 9 | Daehyung Lee | $1,000,000 | $482,788 | Additional tax from South Korea |
### Key Tax Considerations
- **U.S. Withholding:** Players not covered by a U.S. tax treaty have 30% withheld on winnings above $5,000. - **Tax Treaties:** Players from countries with tax treaties can claim a full prize by submitting a W-88EN form. - **Home-Country Taxes:** Some players may face additional taxes at home, such as Leo Margets (Spain) and Daehyung Lee (South Korea).
### Sample Calculations
- **Michael Mizrachi (U.S.):** $10,000,000 prize, after-tax: $6,032,745 (implying approximately 40% effective U.S. tax rate, including federal and state taxes). - **Leo Margets (Spain):** $1,500,000 prize, after-tax: $795,000 (implying significant Spanish taxation in addition to any U.S. withholding). - **Kenny Hallaert (Belgium?):** $3,000,000 prize, after-tax: $3,000,000 (no U.S. withholding and no additional home-country tax on gambling winnings).
### Additional Notes
- **Documentation:** Foreign nationals must provide proper documentation to avoid withholding, while others must complete IRS forms to potentially recover withheld amounts. - **Gambling Logs:** The IRS requires proof of wins and losses for U.S. tax filing, and similar documentation may be needed in other countries to offset gambling income.
- Michael Mizrachi's winnings from gambling in the 2025 WSOP Main Event, despite being $10,000,000, have an after-tax value of $6,032,745 due to U.S. tax implications.
- The business of gambling poses financial implications, as seen with Leo Margets, with a $1,500,000 prize from the 2025 WSOP Main Event, having an after-tax value of $795,000 due to additional taxation from Spain.
