Robert Libutti - Page 13

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          Commissioner, 26 T.C. 1218 (1956).  Our opinion does not depart             
          from this view.  None of the prior cases dealt with the specific            
          facts at hand; namely, a gambler who received comps to induce him           
          to gamble.  The cases dealt mostly with taxpayers who worked in             
          gambling establishments, as opposed to placing bets in wagering             
          transactions there, and who received compensation that was                  
          different than ordinary pay.  In Boyd v. United States, supra,              
          for example, the taxpayer was a professional poker player who               
          managed a casino's poker room.  The casino did not participate in           
          the poker games, but it earned money on the games by renting its            
          facilities to the players for a fee.  The taxpayer played in the            
          games to attract customers, and he received a portion of the fee.           
          The Court of Appeals for the Ninth Circuit held that the                    
          taxpayer's portions of the fees were not gains from wagering                
          transactions under section 165(d).  The Court of Appeals found              
          controlling that the fees were a form of rental and were not                
          derived directly from wagering transactions entered into by the             
          taxpayer himself.  Id. at 1373.  Similarly, in Bevers v.                    
          Commissioner, supra, this Court faced the question of whether               
          former section 165(d) allowed a dealer to offset his tips against           
          his gambling losses.  The Court held that it did not.  According            
          to the Court, the dealer’s tips were gains from his labor as a              
          dealer, because the tips came to him in his employment as a                 
          dealer.  Id. at 1220-1221.  Once again, the dealer did not                  
          himself place the bet in the wagering transactions; rather, it              



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