Table Of Contents

Poker Rooms The linked sites offer opportunities to learn and enjoy poker by providing articles, odds, and play money games. Card Player recommends these poker sites for those purposes. Ignition Poker is one of the best and biggest US Friendly Poker Rooms. Play on a soft field and enjoy a great bonus! Poker is a game that deftly combines skill and luck, and distills it in a way that produces competitive formats. Visited by poker players from around the world, the best online poker sites today provide poker aficionados with tremendous opportunities to play many popular variants of the game, participate in online poker tournaments, and more.Poker sites.

1. Legal Online Poker Sites Rise Again. Also in 2011, the DOJ released a legal opinion that the Federal Wire act exclusively applied only to one form of gambling: sports betting. A few states saw this as a possibility, paving the way to regulated online casinos and legal US poker sites.
2. You have to do math in your head. Online, many poker rooms have odds calculators that will tell you the pot and card odds. And you can use a calculator. You have to be careful not to miss flush draws or made flushes in live games. Online, poker sites.

Looking for the best US poker sites to play online poker games for free and real money? Check out these poker rooms!

Finding a great site to play online poker games from the US is not that difficult. But with all the different states allowing different operators — things can get a little messy for the uninitiated poker players in the US.

On this page, you'll learn:

• and lots more

Our team of poker pros (which includes World Series of Poker (WSOP) bracelet winner Chad Holloway) have tested and reviewed all the US poker rooms in this article. This way, you can find everything about the games, the level, and the bonuses available.

In other words, if you are looking for a list of the best online poker sites for US players in 2021, you'll love this one!

The Best Poker Sites for US Players

Online Poker in the US & US Poker Rooms

The game of poker is an epitome of gambling in the United States, and the US poker sites on the list have to meet a lot of expectations from millions of players across the country.

Luckily for you, we have completed a thorough examination of every single aspect of these poker rooms to ascertain their true worth.

Here at PokerNews we have been in the business of reviewing online poker sites and online casinos for over 15 years, and our large US fan base stands testament to the continuous high-quality content we deliver.

No matter if you are new to poker or an experienced player, you could use a bit of help figuring out which poker site is the right choice for you. It all depends on what you are after.

If lucrative bonuses are your thing, that's perfectly fine. Here, you will find the top US poker sites with the most generous bonuses.

However, you shouldn't overlook the importance of the legality of poker rooms, the number of different games available, the betting limits that apply, the variety of payment methods, and the overall reputation of poker rooms when choosing your next US online poker destination.

All this and more will be covered in this comprehensive guide, plus the legal framework of real-money online poker gambling in specific US states.

Is Online Poker Legal in the US?

The situation with the legality of online poker in the US is not so clear cut as you might expect. To get to the bottom of this, we must look at the applicable gambling laws.

First of all, gambling in the US is regulated on a state, federal, and, of course, local level.

Looking at these levels of regulations, the only viable conjecture you can derive is that things are bound to get messy.

At the moment, the Constitution allows all states to make their own laws regarding online gambling.

• A handful of states have already legalized online poker, such as Nevada, New Jersey, Delaware, and Pennsylvania. In these states, online operators are required to sign licensing agreements with the land-based casinos in order to launch their online poker rooms, and plenty of big names have already done so.
• More states are taking a leaf from their books and filing for online poker and gambling licenses in a bid to legalize the market entirely. By doing so, the states will benefit from taxes these operators will pay and will ensure their citizens have fair and safe gambling opportunities.
• The states of Michigan and West Virginia have already passed the required laws. The roll out of the first poker sites is expected by the end of 2020 at best, but it is more likely to expect them in 2021.

How to Play Online Poker From the US?

With the popularity of online poker on the rise, finding an online poker room in the US should be a breeze.

Even so, there are multiple factors you need to consider and a couple of steps you need to complete before getting a piece of the action.

1. Check if Online Poker Is Legal in Your State

The first and foremost step is to make sure the state you are playing in has legalized online poker.

The states that offer full-blown poker sites are:

Some of them even share players, namely Nevada, Delaware, and New Jersey.

Players from these states can participate in poker tournaments, which, consequently, have larger prize pools and are more appealing.

The states of Michigan and West Virginia followed suit and enacted the necessary bills and laws to legalize online poker.

Players from these states can expect legal online poker rooms soon.

Another important thing to remember here is that you don't need to be a resident in any of these states to play online poker legally.

You are only required to be physically present in any of them to register an account, make a deposit, and play No Limit Texas Hold'em, Pot Limit Omaha, and plenty of other versions of the game.

2. Choose the Best Online Poker Site for You

Next up is choosing the best online poker site for you. This means that you have to consider personal preferences, such as:

• types of games you like to play
• betting limits
• payment methods
• support options
• mobile poker apps for US players

All the US poker sites listed here will have a thing or two to offer, but the more you understand your playing habits, the better.

3. Register an Account

Once you have chosen the poker site, you can proceed to the registration process.

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To do so, you will be required to provide personal details, such as name, DOB, address, email, etc.

Poker sites will ask you to provide a proof of identity as a part of their KYC (Know Your Customer) policy imposed by the legislation.

The proof of identity is usually in the form of a copy of your ID or another personal document, the final four digits of your Social Security number (SSN), a copy of your bank statement, etc.

These poker rooms make sure no underage gambling can take place and also prevent money laundering and fraud.

3. Deposit Funds to Your Account and Claim the Bonus Offer

The next step involves selecting the deposit method from the site's banking section and making the first deposit.

The top US poker sites presented here offer exciting and generous deposit match bonus offers once the players make qualifying deposits.

Check out the promotions tab and see which types of bonuses and freebies you can claim.

4. Choose the Type Of Poker Game and Play On

The final step you need to take is to choose between the different types of poker games offered by the site and take a virtual seat at the table.

The most common formats of poker include cash games and tournament poker.

• In cash games, the value of your chips corresponds directly to the monetary value, while in tournaments, you will have to buy in for a stack of chips and continue playing until you run out of chips or another player claims them all.
• In poker tournaments, the size of bets increases over time to make sure the game is action-packed.

How Do We Rate US Online Poker Sites

The entire review process of online poker sites is completed with the utmost care and diligence.

There are no stones left unturned, and we give no slack to anyone.

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Our long history of 15+ years in the business and hard-earned reputation will never permit it.

Over the years, PokerNews has been declared the number one online poker guide several times, and we have been on the receiving end of quite a number of awards.

To fill you in on the process, we will try to break down the criteria we impose for our selection of key US poker sites into a couple of segments:

We List Only the Licensed Operators

All poker sites listed here have been licensed and certified by the appointed jurisdictions and authorities, which is a guarantee of safety, legality, and fairness of those sites and their poker games.

What's more, we look into the reputation of these sites to make sure players are content with the services provided and treatment.

Only after we make sure the site ticks all the right boxes do we present it here.

We Scrutinize the Bonuses

We never cease to look for the heftiest poker bonuses out there, so that our visitors can rest assured only the best possible bonus offers are listed.

What's more, we don't get carried away just by the sheer size of the bonus.

No sir.

There needs to be a balance between what is being offered as a bonus and what you need to do to turn that bonus into real cash.

We look into wagering requirements, the validity period of the bonus, and other requirements that appear as the small print in the terms and conditions that, sadly, only few players consult.

Luckily for you, we check that info as well.

Our Pro Players Look Into the Choice of Games and Quality

Did you know that one of our reviewers won an actual WSOP bracelet in Las Vegas?

Our reviewers are experienced poker players who know every nook and cranny of the game, and where to look for any hidden flaws in the choice of games and rules.

The sites offered here host a number of different types of poker, with plenty of poker formats and competitions, and their player traffic is a clear sign of quality.

We Test the Site's Software

Another important part of our testing process is the test of the site's software.

We want to make sure that sites have both web apps that allow instant in-browser play and mobile apps that enable players to engage in poker games on the go.

That said, we spend hours playing the actual games before reaching a verdict.

Also, if the poker room has a fully downloadable app for PCs, we will download it and make sure its functionality and gaming experience are top-notch.

These sites need to be responsive, easy to use, simple to navigate, and user-friendly. Only such poker rooms and mobile poker sites end up on our top list.

We Look Into Deposit Methods

Another important aspect of our review process is the examination of banking methods offered by the poker room.

This list includes only sites that offer the greatest variety of online banking, credit/debit cards, e-wallets, prepaid vouchers, and other methods, all of which need to be fast, convenient, and protected by the latest SSL encryption and firewalls.

We Put Customer Support to a Test

Having knowledgeable and reliable customer support on your side when a problem occurs is imperative for poker players.

We put each site's customer support to a rigorous test to check their knowledge, response times, and amiableness. If all goes well, only then the site gets on our list.

Regulated US Poker Sites

As we briefly mentioned earlier, all states within the US are at liberty to regulate gambling as they see fit and under legal provisions.

The first poker and gambling-related laws in the USA were drafted in the 19th century, and since then, multiple other legal motions were filed and bills enacted.

One of the initial gambling laws and acts that apply to online poker and gambling was the Interstate Wire Act of 1961, otherwise known as the Federal Wire Act.

This act prohibited any sort of information and payment transmissions across state lines that had anything to do with sports betting.

The reverberations following this act spread like forest fires, and, unfortunately, included online poker and other forms of online gambling, and stymied their progress.

Another significant blow the online poker industry suffered from the US legislators came in the form of the Unlawful Internet Gaming Enforcement Act (UIGEA).

This regulatory act banned all payment institutions from processing transactions involving online gambling, including poker.

In 2011, three large poker operators were indicted for alleged foul play and breaking of the UIGEA, which effectively shut down online poker in the states. This was an event the poker community refers to as ‘Black Friday'.

With such impediments on the road, it is no wonder why it took online poker so long to reestablish a foothold in a country that is considered to be its birthplace.

Monumental changes happened in 2011 when the US Department of Justice reversed the Wire Act's decision and rendered it only applicable to sports wagering. This paved the way for states to legalize online poker anew.

In 2019, the DOJ released a revised opinion on the Wire Act, but its impacts are yet to be seen.

The following is a quick overview of how things work in key online poker states in the US.

NJ Poker Sites

New Jersey has been at the forefront of the online poker legalization process, and the third state to legalize it in 2013.

The first attempt to legalize online poker was vetoed by the governor in 2011, but by the end of 2013, the first poker platforms emerged.

At the moment, three operators are licensed to operate in the Garden State:

• 888poker
• WSOP.com
• PokerStars

PA Poker Sites

PokerStars is the only legal online poker site in the state of Pennsylvania. 888poker and WSOP Poker are expected to launch in the keystone State in 2021.

For more information about the games at PokerStars, check out this page dedicated to PokerStars US.

MI Poker Sites

The Great Lake State legalized all forms of online gambling, including online poker, in December 2019, when its governor Gretchen Whitmer signed the proposal into a bill.

The first sites and poker rooms are expected in 2021.

OffShore Poker Sites

Even though some sites might tell you that playing in offshore online casinos and poker rooms is possible, that doesn't mean it is legal or safe.

In fact, most of these offshore poker sites have not been licensed by reputable gambling jurisdictions, nor are they protected by the latest security systems.

What's more, there are no guarantees that your banking details are protected and secure from any third-party influences.

That said, you are better off playing only on legal and vetted poker sites presented here than roaming around the internet and falling prey to malicious offshore poker rooms.

Best Deposit Options for US Online Poker Players

Top US poker sites offer several popular deposit methods for their players. The most frequently used deposit method is credit/debit bank cards, such as Discover, Visa, and Mastercard.

Almost all banks in regulated states will process such payments, so you won't have any problems making a fast and secure deposit.

Another essential deposit method is the e-wallet method. Poker fans use PayPal, Skrill, and other e-wallets to transfer their funds to and from the poker site seamlessly and quickly.

Methods such as e-checks and online banking are also quite popular and widespread, although they are a little bit slower when compared to e-wallets, for example.

Finally, most US poker sites offer PayNearMe prepaid vouchers and cash deposits you can use at your local 7-Eleven stores and casino cages from the land-based casino partners, respectively.

Problem Gambling and Useful Resources

Problem gambling is a serious issue, and some Americans have a tough time dealing with it.

That is why it is important that poker sites have strong, responsible gambling policies in power and that they cooperate with the regulatory bodies dealing with this issue, such as the National Council on Problem Gambling, Gamble Aware, AMA Responsibility in Gaming, and others.

Through this collaboration and effort, the negative impact of gambling can be reduced and sensitive groups protected.

FAQ

Online poker is perfectly legal in US states that have enacted specific online gambling laws.

You can play real money poker games online in the states of New Jersey, Pennsylvania, Nevada, and Delaware. In the future, you can expect the list to expand to include the states of Michigan and West Virginia.

The UIGEA came into force in 2006.

Players shouldn't play in offshore poker rooms as these are not technically legal in the US and are deemed as highly insecure.

Players are not required to live in a state where online poker is legal in order to play it. You only need to be physically present in the state at the moment of play.

Legal online poker sites have strong geolocation software that will pierce through almost all VPN networks, thus preventing players from outside the states from engaging in real-money poker games online.

US poker players have seen their online poker options dwindle since UIGEA legislation was passed in 2006, but there are still a number of high-quality US poker sites that cater to US players. However, not all US friendly poker sites are equal, and not just in terms of player traffic or soft games! It’s incredibly important that you choose a reputable poker site that will guarantee an honest game; offer numerous US deposit options as well as speedy transactions; and a support team that is fluent in English.

This page is quite long so for your convenience the links below will bring you to the appropriate section.

– Recommended US Poker Sites
– US Poker Deposit Methods
– US Online Poker Withdrawals
– Online Poker Legality and Restrictions for US Poker Players
– What Is The UIGEA
– Tax Considerations For American Online Poker Players

NOTE To Reader: Here is our list of the best US poker sites for US players. All these sites are completely legal for American players to play online poker, as well as being safe and reliable.

Recommended US Poker Sites

Carbon Poker (www.carbonpoker.ag) makes our list of US poker rooms for three reasons. First, when it comes to reputation Carbon Poker is at the top of the industry. With an existence in the online gambling and poker industry for several years, Carbon Poker is one of the most credible and reliable online poker sites.

Secondly, as one of the most heavily trafficked US online poker sites Carbon offers some of the juiciest poker games on the Internet. The huge traffic numbers also make it exceedingly easy to find a game at any hour of the day, no matter what your game of choice may be; Carbon Poker is one of the very few poker site options where players who prefer games such as Omaha can find a table running.

Thirdly, Carbon has a wide number of deposit options for US poker players. They currently take certain Visas, MasterCard, Bank Wire and Checks from US residents.

Finally, with one of the great poker deposit bonuses of any online poker site, Carbon Poker gives players from the US a 200% match on any deposit up to $5000 if they sign-up by following the links on this page. This deposit bonus can also be cleared relatively fast by lower stakes players. When you consider the site’s reputation and player traffic, Carbon Poker is an easy choice for our list of the best poker sites for US players.

Poker Depositing Options For Poker Players In The USA

Depositing to online poker sites in the USA has become a bit difficult recently but it is not impossible. There are still many online poker rooms that still accept US players. These US online poker rooms have several deposit options for US players. Many of these options are instant where the funds immediately appear in the player’s poker accounts.

Credit cards are the easiest and fastest way for US players to deposit. These include Visa, Mastercard, Diner’s Club and in some cases American Express. Unfortunately, some online poker rooms have a low acceptance rate for US players. The best results tend to be with debit cards which operate differently than standard credit cards. These debit cards carry the logo of the credit card company but the money comes directly out of the player’s bank account instantly. Visa gift cards that can be purchased at grocery stores, convenience stores or large discount stores also have a higher acceptance rate than standard credit cards.

There are still some ewallets that accepts US players. MyPayLinq has become one option for US players. Players can deposit by credit card, bank transfer, Western Union or they can receive a player to player transfer from a friend. MoneyLineWallet accepts echecks from players. The first echeck deposit can take as many as ten business days to clear. Once the first echeck has cleared future echecks are instant. This means that players can deposit to their favorite US online poker room and play within minutes.

Digital Pin is another deposit option. Digital Pin is a phone card that can be used to deposit to online poker rooms. The phone card can be funded through your bank account. Once the funds clear you can use it in the same way that you would use a credit card when depositing to your favorite online poker room.

Some poker rooms will accept a check through the mail. In some cases you may need to receive a certified check from your bank. When you mail this check to your poker room of choice they deposit it. Within a few business days you may play. You can also use a money order this same way. Money orders can be purchased at many convenience stores and all post offices.

Bank wire is another option. If the poker room of your choice accepts bank wires you will need to get their banking information. You then call or visit your bank with this information. Bank wires are typically processed on the same day so you will be able to play with these funds within 24 hours.

Western Union is another option. Players can initiate a Western Union deposit by credit card or bank transfer at Westernunion.com. A credit card deposit will be sent immediately. A bank account transfer takes about three days. If you would like to make the deposit by cash you can go to any Western Union retail location. Cash transfers are also instant. These include check cashing stores, convenience stores and grocery stores. While the fees tend to be high with Western Union in many cases the online poker room will reimburse you for these fees, especially on large deposits. Using a credit card or cash for a Western Union transfer is often the fastest way to deposit on an online poker room.

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Moneygram is similar to Western Union. If you wish to deposit by credit card or bank account you can go to Moneygram.com. Credit card deposits are instant. Bank transfers take about three days. You can also go to a Moneygram retail location and send cash which is instant. Moneygram is offered at many grocery stores, convenience stores and discount stores.

US Online Poker Withdrawals

Ideally players want to receive their withdrawal as quickly as possible. Choose a reputable poker room.

Now that you have deposited and played it is time to get your winnings. While receiving a cashout is not as quick as depositing there are still many cashout methods for US online poker.

Most US online poker rooms will cash you out by check. These checks are typically sent by couriers like FedEx or UPS. They are delivered directly to your door. The time it can take to receive a check varies greatly depending on demand at that time. Checks can be delivered in as little as a few days or it can take several weeks. Make sure to ask when requesting your check how long it will take. The poker room should be able to give you a good time frame. There may be a small charge for cashing out by check.

Bank wires are another option. A bank wire is deposited directly into your bank account. Your bank will charge a fee of around $20 to receive the bank wire. Bank wires are usually reserved for large withdrawals typically associated with high limit play or large tournament wins.

Western Union is offered as a cashout method by some online poker rooms. Some of these rooms will allow you one free withdrawal a month. If the fees are not covered by the poker room your fee may be as much as $25. The upside of this cashout option is that you can pick up your cash at any Western Union agent. These include convenience stores, grocery stores and check cashing locations.
Moneygram is similar to Western Union. They are usually cheaper though. If you have to pay the fees for withdrawals by Moneygram expect to pay around $20. Just as with Western Union, you are paid in cash at locations such as discount stores and convenience stores.

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Some US online poker rooms have become creative with smaller cashouts. Instead of a check they may mail you a disposable gift card with a credit card logo on it. If you receive one you will need to call the company to activate it. You can then go to any ATM and withdraw the money. You may also use the card anywhere that credit cards are accepted.

Another creative choice is a prepaid, reusable credit card. Once you establish a relationship with an online poker room they may send you a credit card. When you request a cashout the online poker room will add the funds directly to the credit card. You may then go to any ATM and withdraw the funds or use it anywhere credit cards are accepted. You then hold on to the card so that you can receive your future winnings on the same card.

Online Poker Legality and Restrictions for US Poker Players

It is NOT illegal to participate in online poker games in the United States, except in the state of Washington –but it’s important to note that no online poker player has ever been criminally charged in Washington State.

On the other hand, operating an online poker site is currently illegal in the United States, and the passage of UIGEA legislation has made it illegal for banks or other payment processors to accept deposits or cash-outs from online gambling sites –some banks/processors put online poker in the gambling category while others don’t.

The truth of the matter is that these laws are for all intents and purposes unenforceable, since all online poker rooms operate offshore, as do a number of willing payment processors. And any online poker player who is willing to wait a couple of days can easily fund their US poker site account with ease.

What Is The UIGEA

US Residents face challenges playing Online Poker.

The UIGEA is the Unlawful Gambling Enforcement Act. The UIGEA was passed by the US Congress on September 30, 2006. It was attached to the Safe Port Act, an unrelated bill. It was signed into law by President George W. Bush on October 13, 2006.

The UIGEA did not make anything new illegal. It reenforced laws that were already on the books. It made it illegal to process payments related to gambling that was already illegal. The gambling laws that could be used to enforce the UIGEA include the Wire Act of 1961 as well as state gambling laws. The UIGEA did not make any type of gambling legal. The UIGEA does not apply to players in any way. It is not illegal for a player to make a deposit or receive a withdrawal from any online gambling site. The UIGEA specifically exempted fantasy sports as well as intra state and inter tribal gambling. It is assumed that the intra state exemptions include horse racing and state lotteries.

Between the day the UIGEA passed Congress and the day President George W. Bush signed the bill into law US facing online poker rooms had major decisions to make. At the time Party Poker accepted US players and was the largest online poker room. They decided to leave the US market within hours of the UIGEA becoming law. Other US facing online poker rooms and networks that left the US market included iPoker, Ongame, Boss Media, Entraction, Cryptologic, Everest Poker and Action Poker.

Paradise Poker, at the time a standalone online poker room, stopped accepting US deposits immediately but allowed players in most states to play for thirty more days.

Some online poker rooms and networks decided that the law did not apply to online poker or decided that accepting US players was worth the risk. Online poker rooms that continued to accept US players included PokerStars, Full Tilt Poker, Absolute Poker, Ultimate Bet, Cake Poker, Carbon Poker, Poker4Ever and Bodog. Microgaming took an unusual position. They decided to continue to accept players from the US, but only from 39 states. Microgaming took the position that online poker was not covered by any federal law but decided that 11 states had laws that may cover offering poker over the internet to their state residents. Eventually two more states were banned. In 2009, Microgaming completely left the US market.

The UIGEA affected online poker players from all over the world. This is because virtually every online poker room was affected in some way. At the time the UIGEA passed virtually all online poker rooms and networks accepted US players. The mass banning of US players across so many networks affected game liquidity and game selection on most networks. Most notably, Party Poker instantly lost their #1 status to PokerStars. Other notable actions include Paradise Poker abandoning their standalone poker room and joining Boss Media, also known as the International Poker Network.

Some poker rooms were only slightly affected. For example, Entraction lost few players as their network was already a majority European players. Everest Poker had only accepted US players for a few weeks and had not built any type of US player base. Betfair never accepted US players so they were not affected at all.

The UIGEA seemed like a dream for the online poker rooms that continued to accept US players. The UIGEA was first used in the Black Friday indictments. PokerStars, who already was the online poker tournament leader, became the largest online poker room overnight. Full Tilt Poker, who was a medium sized room before the UIGEA, quickly became #2. Absolute Poker and Ultimate Bet were separate, standalone poker rooms at the time the UIGEA passed, grew exponentially. Eventually they would merge and become the Cereus Network. Cake Poker, who was largely unknown and very small before the UIGEA, became a network and was able to land some large sportsbooks as network partners.

April 15, 2011 was the first time that the UIGEA was used to indict online gaming operators. On that day, known throughout the online poker world as Black Friday, the operators of PokerStars, Full Tilt Poker and Absolute Poker were indicted. Charges included conspiracy to violate the UIGEA, violating the UIGEA, as well as operating an illegal gambling business. Immediately PokerStars and Full Tilt Poker left the US market. Absolute Poker and their sister site UB.com continued to allow US players to play even though they stopped allowing them to deposit.

The Department of Justice alleges that these online poker rooms conspired to commit bank fraud by miscoding financial transactions with banks. All banking transactions involve a code that describes the transaction. For example, a credit used for online gambling purposes would have the code 7995. It is alleged that these online poker rooms miscoded these transactions to improve the acceptance rate. These transactions were passed off as different types of internet commerce not related to online poker. Although eleven people were charged with violating the UIGEA none have been convicted of this crime. Plea bargains related to Black Friday have dropped the UIGEA counts.

In the aftermath of the UIGEA related indictments Full Tilt Poker has completely shut down after losing their Alderney licensing. While Absolute Poker and UB.com still operate they no longer accept US players and have lost 98% of their traffic. PokerStars continues to operate business as usual and has seen little change in their business.

In addition to the online poker community the UIGEA has been the target of libertarian groups as well as internet freedom groups. Mainstream politicians have aimed to repeal or replace the UIGEA with a law that would regulate online poker. At this point nothing has been done though and the UIGEA remains on the books.

Tax Considerations For American Online Poker Players

The U.S. is unique when it comes to gambling winnings. Unlike most of the world, poker players in the U.S. must pay taxes on their online poker winnings. It is the poker player’s responsibility to file taxes on their winnings. There are several ways for U.S. players to file their taxes on their poker winnings.

If a poker player wins $5000 or more in a live poker tournament the player is issued a W2G. The W2G winnings must be included on that year’s tax return. There is a line on the tax return to enter W2G winnings. Most people that file their income tax on their own use a tax software program. The tax software will ask you if you have a W2G to enter as a part of your income. W2Gs can also be issued with a slot win of $1200 or more, or a keno win of $1700 or more.

Jamie Gold paid 35% tax on his $12,000,000 WSOP Main Event win.

If a casual player is issued a W2G that player will have a difficult time deducting their gambling losses against that win. This is because there are only two ways to take deductions against W2Gs. One is to deduct losses against the win in the itemized deductions section. Only the amount of the W2G can be deducted. This means if a player has a $10,000 W2G but lost $15,000 the player can only deduct $10,000. Also, most people do not itemize deductions. If it is better to take the standard deduction instead of itemizing, which is true for almost all tax payers that do not have a mortgage or donate a lot to charity, then nothing can be deducted against your W2G. Another way is to file as a professional gambler using a Schedule C.

If a poker player can prove that they are a winning player then the player can file a Schedule C. Typically a Schedule C is filed by sole proprietor businesses. If a player is a consistent winner then they can file as a self employed gambler using the Schedule C. If a player has won two of the last three years, or three of the last five, then the IRS will generally accept a poker player filing as a professional.

There are positives and negatives filing a Schedule C as a professional poker player. When a poker player files as a professional that player can net their entire win or loss. By doing this, W2Gs become irrelevant. A player simply shows a net win or loss. The poker player can also deduct travel expenses such as mileage, airline tickets, hotel rooms and meals while they are playing brick and mortar poker. If the player specializes in online poker then they may be able to deduct a home office as well as computer equipment needed to play online poker. This includes monitors, office chair and CPU.

The negative of filing as a professional poker player is that the player must pay Social Security tax and Medicare tax. Typically when a person has a job they pay half of their Social Security tax and half of their Medicare tax. Their employer pays the other half. When you file a Schedule C you are filing as a self employed tax payer. This means that you must pay 100% of your Social Security and Medicare taxes. This means that even before you have paid income tax on your poker winnings you are paying 12.4% Social Security and 2.9% Medicare tax. While you can deduct this self employment tax from your Schedule C a poker player will still pay 12.24% in extra taxes if they are in the 20% tax bracket.

If a poker player does not have a W2G but has poker winnings they still must declare their winnings to the IRS. This is done under the Gambling Winnings category on Form 1040. These poker winnings must be declared whether the player won playing brick and mortar poker or online poker.

Players that do not pay their taxes are subject to fines, penalties and interest. This is in addition to the taxes owed. If the IRS determines that a poker player committed fraud then that player can even be subject to prison. While poker players may think that the IRS will never know about their cash winnings it is better to be safe than in trouble with the IRS.