Besides Koray Aldemir, the IRS is once again the big winner of the 2021 WSOP Main Event collecting an incredible $4.955.000 in taxes!
The saying goes that “Nothing is certain but death and taxes” and while the former might be true, the new World Series of Poker champion, Koray Aldemir, can laugh at the incorrectness of the latter.
Berlin-born Aldemir saved $3.7 Million of his $8,000,000 scoop from going to the German tax authorities by moving to neighbouring Austria, who don’t tax gambling winnings.
Every year, Russ Fox – who works for Clayton Financial and Tax of Las Vegas – delves into the mysteries of the global tax system and works out just how much of their winnings each player from the Main Event final table can expect to keep.
Sometimes, as with 2019 Main Event winner, Hossein Ensan, that number can be eye-watering. The Iranian-born, German pro scooped $10million for his heads-up victory over Dario Sammartino, but had to pay $4.6million of that to the taxman.
Koray Aldemir: Wins $8 Million Keeps $8 Million
Had Koray Aldemir not taken up residence in Vienna, Austria, he’d have been paying the same brutal 46% tax rate as Ensan – and that would have cut his $8million down to just $4.3million.
However, a US-Austria tax treaty means that the IRS won’t be withholding any of Koray’s cash, and Austria doesn’t tax gambling income at all (hence his move from Germany) and he gets to keep all $8million.
George Holmes: Wins $4.3million Keeps $2.5million
For the man Aldemir defeated heads-up, George Holmes, the news is less good. Resident in Atlanta, Georgia, the amateur player who thrilled the Rio with his deep run will have to hand over an estimated $1.8million plus change to the IRS (Internal revenue Service), leaving him a still healthy $2.5million to celebrate.
Joshua Remitio: Wins $2.3million Keeps $1.295million
The other US players who made the final table face a similar tale of tax woes, with 4th-placed Joshua Remitio from Arizona looking at a $1,004,393 tax hit on his $2.3million prizemoney.
Hye Park: Wins $1.4million Keeps $750k
Sixth-placed Hye Park from Holmdel, New Jersey, is perhaps the unluckiest of all when it comes to his dealings with the taxman.
As Fox points out in his blog post, “New Jersey is not a low tax state (plus as a professional gambler Mr. Park must pay self-employment tax).”
That means he will see his $1.4million prize almost halved – owing roughly $650,000 in tax and keeping “only” $749,709 of his winnings. Park’s estimated 46.45% tax rate is the highest of any of the final table finishers.
Chase Bianchi: Wins $1million Keeps $625k
The other US player, 9th-placed Chase Bianchi, is no longer a professional poker player so saves some self-employment tax according to Fox.
He’ll still have to pay an estimated 37.56% of his winnings in federal and state taxes to the IRS and Massachusetts, reducing his $1million to a take-home paycheck of $624,357.
Jack Oliver: Wins $3million Keeps $3million
Jareth East: Wins $1.1million Keeps $1.1million
The UK, like Aldemir’s Austria, is one of the best places for poker players and gamblers to live – a tax treaty with the US and no taxation of winnings.
Manchester’s Jack Oliver, who bagged 3rd spot last week, gets to keep his $3million while 8th-placed Jareth East pockets his full $1,100,000 payday.
Who does that leave?
Ozgur Secilmis: Wins $1.8million Keeps $1.1million
Well, 5th-placed Ozgur Secilmis, from Istanbul, Turkey, was looking at a $1.8million payout, but almost $700k of that will go to the Turkish Revenue Administration.
Alejandro Lococo: Wins $1.225million Keeps $796,250
As for Argentina’s Rapper Alejandro Lococo better known as “Papo MC” Lococo, the Buenos Aires-based rapper and Papo MC will see a 30% chunk of his $1,225,000 prize for 7th-place withheld by the IRS in the USA.
The PokerStars ambassador will be able to take a tax credit on his Argentina tax return for that, but according to Russ Fox that still means he is handing over $428,750 in tax, leaving him with $796,250.
Fox estimates that just over 20% of the final table prizemoney will be winging its way into the tax coffers of the respective nations, but that is a huge decrease in 2019 when almost 39% of the final nine’s prizes went to tax.
You can see exactly where all the money went in Russ Fox’s detailed breakdown and if you missed it, you can relive all the excitement of this year’s Main Event with our extensive coverage.
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