WSOP Winnings and Tax

[Oskar]

OK Im having an arguement with a mate and Im hope someone can settle it. When a UK player (like Andy Black for example who won over a million) cashes at the WSOP in the states does he have to pay tax on his winnings even though gambling winnings over here arent taxed? If he does pay tax can he claim it back? If so from who? My arguement was the tournament was in the states so he plays by their rules, my mate says he pays no tax. Any ideas? Im aware of double-taxation treaties as I dont pay UK tax anymore but what happens when the rules are different?

[PAULM03]

Re: WSOP Winnings and Tax I don't think you pay any tax on the proceeds of gambling. Not sure of the exact reason but it's something to do with the fact that they would then have to make losses tax deductable, which is more trouble than it's worth.