The TI4 prize pool, a staggering 10.9 million dollars, will go down in history as one of the largest eSports prize pools of its time. However, what many people forget is that the US government charges taxes on events on US soil. Despite a million dollars per person, CEO of Newbee CuZn has reported that 30% of their 5 million will be taken as tax money.

The conclusion of The International 4 has resulted in the largest ever payout of prize money for an eSports event, with most of the final four teams players being rocketed into the top 50 eSports players of all time. With over 5 million dollars in prize money for the winning team, many viewed Newbee's entire team as instant millionaires. Unfortunately, that won't be happening if the US government has anything to say about it. Earlier today, Newbees CEO CuZn announced that they would be giving up 30% of their prize money to taxes. Foreign organizations are required to submit their worldwide income to the United States IRS, or internal revenue service. If they refuse, as in the case of Newbee, they could be subjected to harsher tax rates.

While the type of tax being laid down is unclear, CuZn has stated that the Newbee organization will be taking a 10% cut while 30% goes to taxes, with the remaining 60% going to the players. Each player, therefore, will receive $600,000 as opposed to the glorified 1 million dollars. Despite not becoming millionaires, Newbee will likely be relatively well off for some time as their players have earned more money in one tournament than most players will their entire lives.

Although there have been no other official announcements, it is possible that other teams may be taxed at similar rates.

Source: Gamesinasia.com

TI4 Newbee prize money to be taxed thirty percent