- 8 -
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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