Rakeback and Taxes: How Rakeback Is Taxed

## How Rakeback Is Taxed Rakeback income is taxable in most jurisdictions. Understanding the tax treatment helps you plan accurately and avoid surprises at tax time. ## US Tax Treatment Rakeback is considered gambling income by the IRS. It is reported on your tax return as part of your total gambling winnings. You can deduct gambling losses to offset rakeback income (up to the amount of total winnings). ## Record Keeping Track all rakeback payments by room, date, and amount. Download monthly rakeback statements from each room. Include rakeback in your overall gambling income tracking. ## Bonuses and Promotions Deposit bonuses, freeroll winnings, and promotional prizes are also taxable income. Track these separately for accurate reporting. ## International Differences UK and some other jurisdictions do not tax gambling income, including rakeback. Canada does not tax recreational gambling income but may tax professional poker income including rakeback. ## Professional Poker Taxes Full-time poker players filing as professionals can deduct poker-related expenses against their total gambling income (including rakeback). This includes software, coaching, travel, and home office expenses.