George E. and Gloria Tschetschot - Page 8

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          defined as:  (1) Something risked or staked on an uncertain                 
          event; bet; (2) the act of betting.  Random House College                   
          Dictionary (1973).  Courts have often had to differentiate                  
          between wagering and related activities on the one hand and those           
          activities not falling into that category on the other.  See,               
          e.g., Allen v. U.S. Govt. Dept. of Treas., 976 F.2d 975 (5th Cir.           
          1992) (“tokes” paid as tips to casino dealers are not gains from            
          wagering transactions); Offutt v. Commissioner, 16 T.C. 1214                
          (1951) (betting on horse races is wagering); Libutti v.                     
          Commissioner, T.C. Memo. 1996-108 (gambler’s receipt of                     
          complimentary goods from a casino was sufficiently tied to                  
          gambling participation that they were gains from wagering                   
          transactions); Whitten v. Commissioner, T.C. Memo. 1995-508                 
          (expenses incurred to be a contestant on Wheel of Fortune were              
          not wagering expenses); Heide v. Commissioner, 2 B.T.A. 451                 
          (1925) (playing bridge for stakes is wagering).  However, courts            
          have routinely held that poker is a wagering activity.  See,                
          e.g., Boyd v. United States, supra.  But here, petitioners ask us           
          to treat tournament poker differently than other kinds of poker.            
               After a careful review of the record, it is clear that while           
          there are differences between tournament poker and other types of           
          poker,8 none rise to the level of meaningful, substantive                   

               8  The most significant difference is that unlike playing in           
          a live-action poker game, when one buys into a tournament game,             
                                                             (continued...)           





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