United States v. Calamaro
Court limits $50 wagering occupational tax, rules that a paid 'pick-up man' in a numbers lottery isn't covered, easing tax and reporting obligations for such low-level gambling employees.
Holding
The Court held that the $50 annual occupational tax does not apply to a paid pick-up man who only transports betting slips and has no ownership interest, so his tax conviction cannot stand.
Real-world impact
- Exempts paid pick-up men from the $50 wagering occupational tax.
- Limits registration to people who actually accept bets for gambling principals.
- Reduces one Treasury tool for tracing gambling operations through low-level couriers.
Topics
Summary
Background
The case involves a paid "pick-up man" who collected betting slips from street sellers and delivered them to a Philadelphia numbers banker. He was paid $40 a week, had no ownership interest, and was convicted in district court for failing to pay the $50 annual occupational tax and fined $1,000. A divided Court of Appeals reversed, and the Government asked the Supreme Court to decide whether the pick-up man was "engaged in receiving wagers" under the statute.
Reasoning
The core question was whether "receiving wagers" means simply taking custody of betting records or actually accepting bets as part of making the gambling contract. The Court read the statute and its legislative history to mean that "receiving" is synonymous with "accepting" a wager — the act that completes a betting agreement. The writer (the seller) accepts the bet; the pick-up man merely moves a record. The Court rejected the Government’s reliance on a Treasury regulation and the suggestion that broader enforcement goals required treating pick-up men as taxable. The Court therefore found the pick-up man was not within the occupational tax and that his conviction could not stand.
Real world impact
The ruling narrows who must pay and register under the $50 occupational tax to those who actually accept wagers for a gambling principal. Low-level couriers who only transport records are not covered. The decision limits one tool the Government could use to trace and tax informal lottery operations, though other enforcement methods remain available.
Dissents or concurrances
Justice Burton dissented, arguing the pick-up man should be taxed and registered because he handled the slips that evidenced wagers and because Treasury regulations and registration rules supported a broader reading.
Opinions in this case
- 1.Opinion 105538
- 2.Opinion 9421483
- 3.Opinion 9421484
Questions, answered
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