Internal Revenue Code:Sec. 4421. Definitions

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Location in Internal Revenue Code

     TITLE 26 - INTERNAL REVENUE CODE
      Subtitle D - Miscellaneous Excise Taxes
       CHAPTER 35 - TAXES ON WAGERING
        Subchapter C - Miscellaneous Provisions
      

Statute

    Sec. 4421. Definitions
 
      For purposes of this chapter -
      (1) Wager
        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) Lottery
        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 wagers 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 sections 501 and 521, if no part of the net proceeds
        derived from such drawing inures to the benefit of any private
        shareholder or individual.
 

Sources

    (Aug. 16, 1954, ch. 736, 68A Stat. 528.)
 

References

                   SECTION REFERRED TO IN OTHER SECTIONS
      This section is referred to in sections 4405, 4414 of this title.