[DeadMoneyDad]

[ QUOTE ]
Thanks DeadMoneyDad!

So if I understand it correctly people don't have to pay more taxes due to the withholding. They just pay it at a different time then. At least those people that filed their tournament winnings correctly before.

Of course giving the IRS money (without interest) that can be partially returned after filing a tax report is a disadvantage in liquidity.

Shadow

[/ QUOTE ]

Yes that is pretty much it. The thought behind fighting this is an attempt to further the skills game arguement, because the reg is based on cites of wagering pools and other non-skill based gambling activities.

The interssting parctical effect is on satellittes. Under the current reg, if it holds up, a sponsor will either have to increase the prize amount to reflect the tax consequences. Thus steepening the payout structure, or they will have to make it clear that while you may win a seat you will be required to pony up the withholding to play in the main event.

How tourney operators are going to handle this matter I find quite interesting. Just wondering out loud but could an arguement be made that a satellite win to a main event was in effect a single session with any withholding done after the result of the main event. How this might fly with restrictions on third party registration bans that cause sponsors to offer prizes in cash instead of direct entry as well as on-line entry into major events, I don't know. But perhaps in this instance the interests of on-line and the B&M poker worlds just might interceede.


D$D