U.S. tax rates on gambling competitive disadvantage online?

[TorontoCFE]

You wouldn't be at a "competitive disadvantage" to other players in a strict sense - you are not in competition with other players to make the most money, only trying to maximize your own take home income. You really don't care if someone in another country keeps a bigger % of their income since that doesn't affect you or your decisions in any way.

If you want to make a decision to maximize your disposable income, then you consider how much you take home (after tax) and the cost of living.

High-stakes players have a heavier tax burden but have more tax planning / minimization tools available to them. As your income rises, the cost of living becomes less important since it eats up less % of your income, but the value of safety, luxuries and a predictable environment increase in value. This somewhat offsets the higher burden of paying taxes.

If you can find a non-taxed environment offering everything else that you value, then you are personally better off moving. Whether the people you are playing are paying taxes though offers no benefit or loss to you at all though.