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Casino Comps Are Rebates

2 November 2006

Dear Frank:

Regarding comped and discounted rooms and income taxes:

When a casino gives you a free room, or a discounted room, or even free meals and show tickets -- this is not considered to be taxable income. Rather, these should be considered rebates. Rebates are not taxable.

Think of these freebies or comps as free airline tickets in exchange for frequent flyer miles. There was an effort to tax these free airline tickets, but Congress abandoned the effort. One reason why Congress did not pursue taxing airline miles and free tickets is that they constituted rebates.

If you buy a car and get $2,000 back (rebate) that is also not taxed.

If Congress or the IRS wanted to tax casino comps, special rules would have to be issued. So far, they have not been.

Best,
Alan

Dear Alan:

Thanks for your letter. I guess since we are taxed on just about everything and the tax code is taller than I am, some casino players feel that their comps are not actually free (or rebates, as you say) but will ultimately cost them. They actually do cost most players since their play is calculated to lose a certain amount and they are actually being rebated on that theoretical loss. If the government then steps in and also wants a cut of the cut that leaves the player losing even more.

I am giving you a free one-month subscription to our private members only site at www.goldentouchcraps.com.

All the best in and out of the casinos!

Frank Scoblete


Do you have a question for Frank? Send it to slotexpert@comcast.net.

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Best of Frank Scoblete
Frank Scoblete

Frank Scoblete is the #1 best selling gaming author in America. His newest books are Slots Conquest: How to Beat the Slot Machines; Everything Casino Poker: Get the Edge at Video Poker, Texas Hold'em, Omaha Hi-Lo and Pai Gow Poker!; Beat Blackjack Now: The Easiest Way to Get the Edge; Casino Craps: Shoot to Win!; Cutting Edge Craps: Advanced Strategies for Serious Players; Casino Conquest: Beat the Casinos at Their Own Games! and The Virgin Kiss.

Frank and Casino City Times columnist Jerry "Stickman" teach private lessons in dice control. Frank's books are available at Amazon.com, in bookstores or by mail order. Call 1-800-944-0406 or write to Frank Scoblete Enterprises, PO Box 446, Malverne, NY 11565. Frank can also be reached by email at fscobe@optonline.net.

Frank Scoblete Websites:

www.goldentouchcraps.com
www.goldentouchblackjack.com

Books by Frank Scoblete:

Casino Craps: Shoot to Win!

> More Books By Frank Scoblete

Frank Scoblete
Frank Scoblete is the #1 best selling gaming author in America. His newest books are Slots Conquest: How to Beat the Slot Machines; Everything Casino Poker: Get the Edge at Video Poker, Texas Hold'em, Omaha Hi-Lo and Pai Gow Poker!; Beat Blackjack Now: The Easiest Way to Get the Edge; Casino Craps: Shoot to Win!; Cutting Edge Craps: Advanced Strategies for Serious Players; Casino Conquest: Beat the Casinos at Their Own Games! and The Virgin Kiss.

Frank and Casino City Times columnist Jerry "Stickman" teach private lessons in dice control. Frank's books are available at Amazon.com, in bookstores or by mail order. Call 1-800-944-0406 or write to Frank Scoblete Enterprises, PO Box 446, Malverne, NY 11565. Frank can also be reached by email at fscobe@optonline.net.

Frank Scoblete Websites:

www.goldentouchcraps.com
www.goldentouchblackjack.com

Books by Frank Scoblete:

> More Books By Frank Scoblete