
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 26USC4421]

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

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

                  Section Referred to in Other Sections

    This section is referred to in sections 4405, 4414 of this title.
