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to be engaged in a trade or business, the taxpayer must
be involved in the activity with continuity and
regularity and * * * the taxpayer’s primary purpose for
engaging in the activity must be for income or profit.
A sporadic activity, a hobby, or an amusement diversion
does not qualify. * * *
* * * * * * *
we conclude that if one’s gambling activity is pursued
full time, in good faith, and with regularity, to the
production of income for a livelihood, and is not a
mere hobby, it is a trade or business within the
meaning of the statutes with which we are here
concerned. * * *
Id. at 35-36. The Supreme Court affirmed the judgment of the
Court of Appeals for the Seventh Circuit, finding the taxpayer
was engaged in the trade or business of gambling. Id. at 36.
Petitioner argues the facts of Groetzinger are similar to
the facts of this case, and, like the Supreme Court in
Groetzinger, we should find petitioner was engaged in the trade
or business of gambling. After carefully considering the facts
in this case, we disagree.
Petitioner argues, like the taxpayer in Groetzinger, he
spent a substantial amount of time preparing for his trips to the
casino and developed a strategy for his gambling:
In 2002, the petitioner went to the casino with a plan.
The petitioner would first talk to the casino hosts to
find out which areas of the casino were heavily played
and what slot machines were/were not hitting. Based
upon the information, the petitioner then determined
what slot machines he was going to play and how much
money he would need.
In 2002, the petitioner set a limit for his losses each
day that he went to the casino. The petitioner also
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