Why Taxing Poker Tournaments Is Unreasonable: Generally, the only source of revenue is the house. The house wins, but the players gain nothing. For example: 100 players each wager $1,000, and the house wagers an additional $100. Of these 100 players, 15 will profit that day, but the total winnings for all 100 players are a loss. If all winners and losers reported their profits as required, the government would not receive any revenue from the players and would instead be overwhelmed by unnecessary paperwork. Of course, the house should pay its due taxes, but taxing a group of players who are net losers is unreasonable. Taxing both the house and the winners is tantamount to double taxation.