New Poker Study Could Trigger Taxation in the UK

A new study that was conducted by academics in England and the Netherlands has suggested that poker requires a certain level of skill in order to win. Researchers analyzed hundreds of millions of online poker hands to determine if the long standing argument of skill vs luck in poker had its merits. They arrived at a conclusion that poker players already know - that skill plays a significant factor in the game.

While this may seem a small victory at first glance, it may not be as bright since these new findings could lead to the introduction of taxes on poker winnings in the UK. Despite poker's popularity, players are currently not being taxed and this study could result in some changes in that respect.

The academics from the University in Nottingham, who worked with Erasmus University in Rotterdam and VU University in Amsterdam, ran numerous tests, comparing hands of the supposedly better players to those considered not as skilled. When the winnings were compared at the end of the testing, it was concluded that skill will always overwhelm luck in poker given enough time and a big enough sample.

Dr. Dennie van Dolder said that if performance in a poker game is predictable, than it is clear that poker has an element of skill and that it should not be considered a game of chance. In his opinion, it is up to UK legislators to decide whether skill is a dominant factor in the game of poker. But when they do finally reach their decision, the poker community might face some changes.

The results of the study could have an impact on legal implications in the UK and there is the possibility that winnings will be taxed. Some poker fans and players will, no doubt, be delighted if poker is finally recognized as a game of skill and is no longer put on the same shelf as other casino games, but the financial impact this recognition could bring with it will not be as sweet.

The results of the latest research is very different from that of a study conducted by ProfessorGerhard Meyer in 2012. According to Meyer, poker is a game of chance and poker players often overestimate the skill factor in their play.

In his study, 300 people were separated in two groups of expert and average players. They played 60 hands and their performance and winnings were later compared. The results showed that expert players lost less money on bad hands but did no better than the average players with mediocre hands. A great majority of the poker community ridiculed the study at the time because 60 hands do not even start to resemble a meaningful sample to draw any conclusions whatsoever.

Both luck and skill have always been and will always be inseparable parts of poker, but most of the poker studies have shown that skilled players will outperform less skilled players over a big enough sample of hands.