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Sparks Nugget. State Tax Exemption Of Food Used By Casinos For Comped Meals, Steve Johnson

UNLV Gaming Law Journal

In their search for new sources of revenue, states have legalized and sought to tax many kinds of gaming. Forty-eight of the fifty states of the United States permit one or more types of legal gaming. An important technique in casino and some other types of gaming is giving “comps” – complimentary goods or services – to player-customers. A frequent type of comp is free meals on the casino premises or elsewhere. Gaming establishments also often give free meals to their employees.

Comps have been controversial for federal income tax purposes. A recent Nevada case, Sparks Nugget, and related cases …