Indiana DOR Finds Casual Gambler Entitled to Net Sessions Income Calculation

The Indiana Department of Revenue (DOR) found that a non-resident taxpayer was a casual gambler entitled to use the net session method to calculate her income. The taxpayer protested an additional assessment of gambling income, explaining that she generally continues to play after she wins a jackpot without “redeeming her tokens.” However, the taxpayer explained that when she wins a large jackpot, the casino immediately prepared tax paperwork and reported the jackpot as income to the DOR. The letter of finding stated that federal law distinguishes between casual and professional gamblers, and that casual gamblers do not incur any income ...