P U B L I C LAW 183—OCT. 20, 1951
Part VII—Wagering SEC. 471. WAGERING TAXES. (a) IMPOSITION OF TAXES.—Subtitle B (relating to miscellaneous
taxes) is hereby amended by inserting after chapter 27 the following 26 u.^s.^a§ 3 7 a 20 new chapter:
- ^"CHAPTER 27A—WAGERING T A X E S
"Subchapter A—Tax on Wagers "SEC 3285. TAX. " (a) WAGERS.—There shall be imposed on wagers, as defined in subsection (b), an excise tax equal to 10 per centum of the amount thereof. " (b) DEFINITIONS.—For the purposes of this chapter— "(1) The term 'wager' means (A) any wager with respect to a sports event or a contest placed with a person engaged in the business of accepting such wagers, (B) any wager placed in a wagering pool with respect to a sports event or a contest, if such pool is conducted for profit, and (C) any wager placed in a lottery conducted for profit. "(2) The term 'lottery' includes the numbers game, policy, and similar types of wagering. The term does not include (A) any game of a type in which usually (i^ the wafers are placed, (ii) the winners are determined, and (iii) the distribution of prizes or other property is made, in the presence of all persons placing wagers in such game, and (B) any drawing conducted by an organization exempt from tax under section 101, if no part of the net proceeds derived from such drawing inures to the benefit of any private shareholder or individual. " (c) AMOUNT OF WAGER.—In determining the amount of any wager for the purposes of this subchapter, all charges incident to the placing of such wager shall be included; except that if the taxpayer establishes, in accordance with regulations prescribed by the Secretary, that an amount equal to the tax imposed by this subchapter has been collected as a separate charge from the person placing such wager, the amount so collected shall be excluded. " (d) PERSONS LIABLE FOR TAX.—Each person who is engaged in the business of accepting wagers shall be liable for and s h a l l p a y the tax under this subchapter on all wagers placed with him. Each person who conducts any wagering pool or lottery shall be liable for and shall pay the tax under this subchapter on all wagers placed in such pool or lottery. "(e) EXCLUSIONS FROM TAX.—No tax shall be imposed by this subchapter (1) on any wager placed with, or on any wager placed in a wagering pool conducted by, a parimutuel wagering enterprise licensed mider State law, and (2) on any wager placed in a coin-operated device with respect to which an occupational tax is imposed by section 3267. " (f) TERRITORIAL EXTENT.—The tax imposed by this subchapter shall apply only to wagers (1) accepted in the United States, or (2) placed by a person who is in the United States (A) with a person who is a citizen or resident of the United States, or (B) in a wagering pool or lottery conducted by a person who is a citizen or resident of the United States. "SEC. 3286. CREDITS AND REFUNDS. " (a) No overpayment of tax under this subchapter shall be credited or refunded (otherwise than under subsection (b)), in pursuance of a court decision or otherwise, unless the person who paid the tax
26U.^s.^a § 101. ^"<«. PP- 490-492.