Positive TAX Ruling for Gamblers

Tax Court Ruling can be read here...

http://www.ustaxcourt.gov/InOpHistor...ER.TCM.WPD.pdf

Key point is that casual gambler was allowed to NET casino jackpot W-2G with additional slot play. This does not mean you net losses with wins through the year as a casual gambler.

...from ruling
petitioners entered the casino with $500 and took home $1,600 of winnings,
the amount of gambling income which petitioners should have
reported on their 2005 return was $1,100 ($2,000 jackpot winnings
less $500 brought to the casino for gambling and less $400 taken
from the jackpot for additional gambling) rather than $2,000 as
determined in the notice of deficiency.

KEY HERE IS THEY ONLY NEEDED TO REPORT $1,100 and NOT $2,000 W-2G AMOUNT

...also
Drawing an analogy to the recovery of a capital investment,
this Court has held that a casual gambler’s gross income from a
wagering transaction should be calculated by subtracting the bets
placed to produce the winnings, not as a deduction in calculating
adjusted gross income or taxable income but as a preliminary
computation in determining gross income

This would be very beneficial to people who only take the standard deduction or who live in states who have a state income tax which does not allow gambling loss deductions.

To me there should be no difference if a person substitutes casino with racetrack in the above ruling.