October 31 - The debate as to whether poker is a game primarily of skill or luck took an interesting turn last month when a tax court ruling was handed down stating that tournament poker should be treated as another gambling activity on the casino floor. The conclusion reached was that tournament poker is not a game of skill, and so should not be exempt from the same tax treatment as other casino games.
Tournament poker is a real grey area and does not lend itself to easy definitions regarding luck and skill. It is a blend of both - to classify it in the same category as roulette or even table poker games like Let It Ride or PaiGow is a grave error, but there is clearly a large amount of luck involved in terms of cashing in tournaments, especially those that attract thousands of players.
To win the World Series Of Poker Main Event one needs more luck than skill, and only a fool would argue that point. The odds of Phil Ivey winning the Main Event have to be in the region of 200/1, and he`d be a strong betting favourite at that price. He simply can`t be any shorter in a field of 6000+ players. The odds of any one poker player rising up in a no-limit field of that size have to be astronomical.
But what of the daily poker tournaments at the big Vegas casinos like the Wynn and the Bellagio? These attract fewer than 100 players many of whom are no-hopers with very little talent. Those casino events will now subtract the amount of your buyin from the amount that you won, and then withhold 25% of the balance - that`s outrageous!
These tournaments clearly have an element of skill to them, mainly because the field is relatively small and contains a lot of weak players. There is obviously luck involved but to classify it as a gambling game seems obtuse to me. It will probably drive the better players who live near those casinos to play more online poker, where withholding tax is not an issue thanks to the ineptitude of the American authorities.
