Originally Posted by mjbballar23
The answer is it depends. Best option is to talk to a CPA and let them address your situation. In the mean time, its probably best to stick to $.25 denomination so you aren't generating W2-Gs.
However, Bobstaman, you need to remember that the 100.7% EV gathered from FPDW is derived mostly from the Royal, as most paytables are top-heavy. Needless to say that the majority of your FPDW sessions will not incur a RF and therefore, the EV will not be affected by taxes.
Another thing that needs to be considered, in the event that you do hit the RF at some point, is how you file your taxes. As a professional gambler, you may either declare "EVERY SINGLE" loss on the "Schedule C" OR declare all losses "UP TO" the amount of your taxable income as a non pro but rather, a recreational player.
(ie. 1 W2G at $1 FPDW = $4000 in losses allowed to be declared).
I would also recommend reading "Tax Help for Gamblers", by Jean Scott, the Queen of Comps. A very valuable book for all intense and purposes.
Hope this helps!!