In the coming weeks we’ll be reviewing these apps, and explaining what you can get. The good news is many of those apps have ties to major casino companies, and with that the ability to earn comps for taking certain actions. But you can’t always get to a casino, and sometimes you want to play something a bit more casual (and free, or at least low cost).Īs such, many casino players are also fans of online social casino apps.

Based on your play, new offers will be sent your way. Anyway if I were IRS, I would use 'Substance over Form Doctrine' to tax the gamblers for free rooms.The most obvious way to earn comps is to go to a casino and play. SFB, I'm with you on 'Inducement' 'not 'comp'ing', as long as there's a reason basis for me to minimize my tax liability however, lets' play a game of devil's advocate.knowing IRS will screw you for more taxes anyway it can. When you are THERE, its more likely to be taxable. Now, if you go to LV, book a room, and you lose some money, then they give you upgrades and vouchers, you have taxable 'comps' that is the difference. Same a McDonalds mailing you a coupon for $1 off a Big Mac. Gotta be in the 10's of millions.Ī hotel mailing you a 'free room' offer isn't 'Comp'ing' you a room. I can imagine what his gambling losses were. If you add up those comps for the three years, you get $2,545,126. even though IRS taxed Bobby on the rest of his comps such as these: Great! Now I understand why IRS did not bother to tax Bobby LiButti on his comped-rooms. It seems that gifts (i.e., Harrah's weekly free room offers) are a loophole for the income tax purpose, and that IRS cannot tax the gamblers on the gifts of free rooms. Anything you received as an promotional offer for just showing up would be a gift. The way I would interpret it is anything you received as the result of points earned, a drawing, or a tournament, is taxable. The book gives examples of gifts and comps earned.

There is a grey area between what counts as a gift, and what was earned. The general rule is that if the player earned or won the comp, it is taxable.

Chapter 3 of Tax Help for Gamblers by Jean Scott and Marissa Chien deals with the topic of taxation of comps.

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