vpFREE2 Forums

cashback vs comps for tax purposes

Jean Scott wrote .....

Marissa tells her clients that CB is gambling income, whereas free buffets aren't. The standard she applies is that
cashback is statutory, while a comp is discretionary. She further discusses this in light of Nevada Gaming Control
rulings for barred players.

I tried to use this argument with the Michigan Gaming Control Board on a Greektown billboard. Greektown had a billboard that said 'over 100% return on bartop dollar JOB with carded play'. Turns out they added their .498% comp rate into the calculation so I challenged them on it. Greektown basically told me to get bent and MGCB said that Greektown is free to use their made up comp rate in the return calculation for advertising. I specifically mentioned the tax differences for comps and cash ( along with several other reasons) but MGCB sided with Greektown. Big surprise there.

A lot of this is in the vpfree_Detroit archives.

JZ

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<<I tried to use this argument with the Michigan Gaming Control Board on a Greektown billboard.>>

Just shows you that it is hard to draw general conclusions. Each state and each IRS agent can interpret things differently.

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________________________________________
Jean $¢ott - Go to http://www.FrugalGambler.biz
  for VP software and strategy cards and for the
  Frugal series of books. Now is the time you might
   need "Tax Help for the Frugal Gambler."

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