Internal Revenue Service
Revenue Ruling

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 Rev. Rul. 55-82

1955-1 C.B. 520

Full Text

Rev. Rul. 55-82

In accordance with the principles outlined in Revenue Ruling 54-405, C.B. 1954-2, 401, the operation of non-coin-operated clay machines and non-coin-operated pinball machines, where prizes are awarded to successful players, constitutes the operation of a lottery conducted for profit and is subject to the wagering taxes imposed by sections 3285 and 3290 of the Internal Revenue Code of 1939. For the purpose of this ruling the redeeming of free games won in connection with the operation of such machines is consisdered to be the awarding of prizes