Hello guys,

In the process to move from UK to the US and trying to do the math to see if the lower rake there makes up for the loss from paying taxes on my winnings in the US.

Wanted to know what the rake is in Los Angeles and Las Vegas? What is the percentage and the cap in the casinos there?

Also, as US based professional poker players are getting taxed wanted to know if somebody has some insights on that? Do you declare all your poker winnings or are there ways to pay less tax?

I am not in or around California but I believe the rake there is a fixed dollar amount not a %.

Rake in LV is generally the lowest of most of USA. Much/most of USA rake is 10% but the cap could be as low as $4 (could even be the rare $3, but I believe those days are gone except in short games) max. Some places are $7 or maybe even $8. These are only legal rooms. Underground or home games could be much higher.

There is also the promo drop. This it’s own topic for EV. Some claim 0EV to -EV but it can also impact play (for good and bad). This promo drop could be up to $3. And some also characterize tips as a “rake”.

OTOH above $2/$5 some rooms charge time (seat rental) instead of raking pots. Also some locales like TX, all the rooms (were) using seat rent to operate in a gray area. Some are now raking pots also. That market is very competitive right now but also unregulated so YMMV.

On the tax topic, that is a it’s own entire business segment. US tax laws are very complex but especially for small businesses and self employed. There are many LEGAL means to reduce or avoid taxes. Your best course of action on taxes is 1) keep detailed and accurate records including costs incurred and 2) consult / work with a tax professional (normally an accountant and maybe a CPA). It is best to find one long before it is time to file and pay taxes because they can provide advice specific to your situation. Btw, this is not tax advice, you will likely need to file and pay estimated taxes quarterly. Again contact a professional early.

Great post above .. rake across the US is typically 10% up to max, so 5/1, 5/2, 6/1 or 6/2 with the promo drop taken at $20. I've yet to see a $7 rake but it may not be too far away. Sometimes the promo drop will increase from 1 to 2 during certain 'extra' promotional hours. HH are in abundance in FL and probably other markets that have competing rooms.

There are some rooms that give 2x comps to the 2/5 NL and up Players or charge time instead of hand rake.

Make sure to ask lots of questions in TX before paying the 'membership' fee and start to pay the seat fee (or more) during your play.

There are a few 'poker' tax CPAs, best to find one and have a consultation even if you don't fully hire them. I also believe there's a thread on this site for poker taxes. Paying in 'something' in quarterly taxes will be important, especially in the 2nd year you file. The IRS 'may' be a bit forgiving the first year you file but penalties for underpaying can apply. Keep track of 'everything', even if it may not be deductible. The rules (laws) are complex .. while food and mileage to your 'home' casino may not be considered an expense it probably is an expense when you're traveling to other rooms.

There are three taxes to consider along the way ..
SSA .. Social Security/Med tax .. Since you are the employer and employee this is around 15% but does have a cap somewhere over 100k
Fed Income Tax .. This will depend on how much net income you have. The more you make the higher the rate that can come out
State Income Tax .. Very important to track this since rates vary a lot and you may need to pay quarterly taxes 'per state' as well. I believe FL and NV are 0% but other states are not, especially California. If you get a 1099 from a room/casino the state will expect their share as well. You also don't want to pay tax in the state you live in when you earned it in another state.

How you keep records is up to you .. The basic law is is to only pay the amount of taxes 'that are due', but with the complexities of the Federal Tax Code it can be cumbersome to determine the best path to take in order to pay the least amount possible .. and for them to accept your return without a raised brow. GL

In California they cannot legally rake as a % of pot size the way most other locations do it, they take what is called a drop instead. Basically, they take $1 as soon as the hand is dealt (even if you chop, the SB pays the $1), plus the BBJP (typically $1-2) if you're in a jackpot game, and then as soon as there is a flop they take out the drop, which I think is generally $5-7 (I think this is total, including the $1 they may have taken out already).

So small pots are heavily raked. What this means is that you should never be just limping in a blinds battle or with 1 other limper. In a 1-3 game, if both blinds limp, there is $6 in the pot...and then they take $5 for the drop and $1 for the BBJP, and now you have $0 in the pot you're playing for. Better to just raise or fold.

Here is the best thread on taxes. It is out of date, but most of the info is probably still right: https://forumserver.twoplustwo.com/5...-poker-740589/ . Short version: you owe taxes on any won amount, and you do not get to net your wins and losses unless you are a professional gambler and also file a Schedule C.