Poker in the United States is a hot legal issue: from regulating online poker to semi-legal home games, it’s hard to know where the law stands. And for some time, gamblers have not been receiving great news. Harry Reid’s failed attempt in Congress to federally legalize online poker and Chris Christie vetoing a bill legalizing online gambling in New Jersey are just a few unsuccessful movements in recent US poker history.

But there is light on the horizon! The conclusion of a 10-year case in California has resulted in a landmark ruling: writing off gambling expenses in the same way as business expenses are now legal. The ruling symbolizes a growing cultural acceptance of professional poker, and also lends a much-needed hand to clarifying gambling taxes. Rulings like this speak to the growing movement.

Until now, tax professionals and accountants were left mired in gray area. Some expenses were allowed, but only up to the amount won. Now, gamblers may adjust their tax returns for the prior three years. Gambling tax expert Ann-Margaret Johnston commented, “The recent ruling is a victory for poker players for a change. This makes it where we can finally treat the expenses by pros as actual write-offs even though they may not have income.”

To be eligible for the deductions, you must be a professional gambler. Or, in simpler terms, your primary income must come from gambling. (And yes, this includes poker!)

The 10-year case centered around horse bettor Robert Mayo, the primary question being: can gamblers make deductions of business expenses? Now, thanks to this case, gambling as a profession is entitled to greater legitimacy, both culturally and financially.

Professor Steve Johnson, of the Nevada Boyd School of Law said, “What the decision says is that gambling is a business trade that is not any different than any other profession.” Not quite aces in the hole, but we’re getting there.

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