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Holy Crap

You may have heard that Peter Eastgate won the 2008 World Series Of Poker. Actually, it looks like the real winner was Denmark:

Denmark’s tax agency is called SKAT. Denmark, like the United States, does tax gambling winnings. For casino gambling (which is where I believe this will be classified) the tax rate is 45% on the first 4 million Danish Kroners; it’s 75% on income above that. Today $1 is worth 5.88907 DKK; Mr. Eastgate won 53,899,250.70 DKK before taxes. Mr. Eastgate will owe about 39,224,438 DKK in tax ($6,660,545). Put another way Mr. Eastgate will keep 14,674,813 DKK ($2,491,871) of his winnings—just 27.23% of his prize. Yes, he faces an effective tax rate of 72.77%. Ouch.


Meanwhile, former commies have a flat tax:

Russia has a 13% flat tax rate, so Mr. Demidov will owe about $755,247 to the State Taxation Service of Russia.

From reader BWM.

12 Responses to “Holy Crap”

  1. bwm Says:

    Demidov took second and is taking home more money than Eastgate. Crazy. I’m sure all of the November 9 and these two in particular are doing well off of endorsements also.

  2. workinwifdakids Says:

    Denmark’s tax agency is called Skat?

    Irony, your office is calling.

  3. Metulj Says:

    I am sure that Mr. Demidov owes his money in other ways in Russia. My sole experience in that country was being told that “this will cost you $50” and that “will cost you $100” for things like an exit visa (which by treaty does not exist between the US and Russia) at every single step of the way. Not as bad as Bulgaria, but if “they” know you have that money, “they” will get their cuts. Ask any Russian NHL player.

    Anyhow, dumb luck should always be taxes /ducks out the thread…

  4. SayUncle Says:

    Dumb luck? You’re going there again?

  5. bwm Says:

    Is he implying that poker is dumb luck? Ummm….

  6. SayUncle Says:

    yup. he’s said so before.

  7. BWM Says:

    Does he know that that statement is demonstrably false?

    Oh yea and does he know that Demidov came in 3rd in the WSOP Europe and 2nd in the WSOP? Blind luck can’t account for that.

  8. chris Says:

    and how are they going to enforce taxes on gambling winnings that were made outside of denmark?

  9. BWM Says:

    Tax treaty with the US according to the link

  10. Sebastian-PGP Says:

    I guess he can’t renounce his citizenship before being taxed? Probably too late.

    I mean really…he could keep what he was going to get taxed and buy his own damn island.

  11. ATLien Says:

    Metulj, again, is a jackass. If it’s all dumb luck, then how come you always see familiar faces toward the end of most tournaments?

  12. ParatrooperJJ Says:

    If he is a professional player he is probably not a Denmark resident and therefore would pay no taxes. The US and the Philipines are the only two countries that tax worldwide income of their citizens regardless of residency.

Remember, I do this to entertain me, not you.

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