Three professional poker players from Quebec — Martin Fournier-Giguère, Philippe Bérubé, and Antoine d’Auteuil — have once again lost their case before the Federal Court of Appeal.
What are the three players accused of?
The tax authorities are demanding income taxes on about 10 million dollars in winnings earned between 2008 and 2012. The reason is that these winnings are considered business income, not just a hobby.
The judges pointed to their intention to make a living from poker, their professional organization, the amount of time spent — up to 330 days per year — and the use of strategic tools. All these factors showed that their activity was more like running a business than playing for fun.
What is the difference between amateurs and professionals in poker?
According to Canada’s Income Tax Act, only income from a source of activity (employment, business, property, etc.) is taxable.
Poker played as a hobby, without organization or profit motive, is not considered a taxable source. But if the activity is structured, regular, profitable, and managed like a real business, it becomes taxable business income.
The case of Jonathan Duhamel
Jonathan Duhamel, the 2010 WSOP Main Event champion, won his case in 2022. His winnings were considered non-taxable, even though they were very high.
The court decided that his activity was not commercial enough. He had personal savings, and poker was not his only source of income.
Countries favorable to poker players for taxes
Some of the most favorable countries for poker players include Canada, where winnings are usually not taxed, and countries like Austria and Malta, which offer good tax environments or incentives for gambling-related activities. Other countries, such as the UK, also have beneficial rules for players, but the details depend on whether someone is seen as a casual player or a professional.
Discover our Strategies Section
