I don't have a reply on the tax issue, but I thought I'd give my opinion anyway. If I were in your shoes, I wouldn't take your dad's money. It certainly is tempting to instantly build a bankroll and play higher stakes, but not on the backs of your relatives. Do not put him in the position of losing money and/or getting snarled up in tax problems. Yes, he can give a $10k tax-free gift to you every year, but do you really want to be in the position of gambling with and possibly loosing your father's money?