The taxpayer was assessed for unreported net earnings from his activities as an online poker player participating in games of the type “Texas Hold’em without limit” for his 2008 to 2011 taxation years (including net earnings of $1.4 million and $1.9 million for 2010 and 2011), and also was allowed the deduction of a net loss for 2012.
In finding that the taxpayer’s gambling activities were a source of income and in dismissing the taxpayer’s appeal, Favreau J stated (at paras. 114-115, 117, 120, TaxInterpretations translation):
During the years 2008, 2009, 2010, 2011 and 2012, the appellant's poker activities were much more than entertainment. … He played poker non-recreationally for the purpose of making a profit. He organized his life around poker. …
The appellant's poker playing activities were his main source of income during the years in dispute. …
[T]he Appellant spent almost all of his time playing poker. An analysis of FullTiltPoker and PokerStars records revealed that the Appellant frequented these online poker sites on a near-daily basis and frequented one of the two gambling sites, often both sites, for … an average of 274 days per year. …
Despite his unusual lifestyle and his propensity for always wanting to play at the high-stakes tables, the appellant was a serious businessman. … He avoided playing against certain opponents and he adjusted his play to his bankroll to avoid overly perilous situations. Appellant adopted objective standards of risk management and minimization. When he participated in live tournaments, he shared and sold shares to other players based on the cost of entering the tournaments.