[tipperdog]

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If you can prove that you approach poker as a business rather than as a hobby, you can file a Schedule C and treat poker winnings and losses slightly differently (as if they were business revenues and costs). That will often be the superior option for a serious player.

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This is absolutely correct and I should have mentioned it in my OP. I was not thinking of professional players.

However, anyone considering this route should be aware that the IRS imposes very high standards for filing as a professional gambler. You really ought to get professional advice before persuing this path.