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The Free-Play Tax Deduction Debate: How Academic Research Can Help, Anthony F. Lucas, Katherine Spilde
The Free-Play Tax Deduction Debate: How Academic Research Can Help, Anthony F. Lucas, Katherine Spilde
UNLV Gaming Research & Review Journal
Free-play is the primary play incentive for slot players in many jurisdictions, with some campaigns eclipsing $50 million in annual redemptions. The efficacy of these incentives remains questionable at best, creating some contentious tax policy issues. Operators want to deduct the face value of these offers from taxable gaming win, based in part on the assumption that they expand the tax base; however, many regulators and taxing authorities question this claim. Any failure to fully recover redeemed free-play creates a deduction that is partially funded by tax payers. Arguments on both sides of this complex tax policy issue are thoroughly …