IGT gets delay in coming up with lump-sum payment plan

The state Gaming Control Board gave IGT an extension after company representatives said the plan should be ready by mid-March.

Board members also were told that following a recent change in federal tax law governing jackpots most of IGT's big winners are accepting discounted lump sums.

The new tax law, sought by IGT and authored by Sen. Richard Bryan, D-Nev., provides that lucky gamblers who hit big jackpots won't be penalized for requesting a lump-sum payment instead of accepting a series of payments over several years.

And by paying jackpots immediately, casinos and lotteries will be able to claim tax deductions sooner and eliminate bookkeeping chores associated with annual payments.

The old law triggered severe tax penalties for winners who took lump sums instead of installments. Under a doctrine known as "constructive receipt," winners could be taxed on the full amount of the jackpot even if they refused a lump-sum payment that was offered.

The Control Board also recommended a plan by Bernice Priess and Phillip Goldstein to sell their combined 3.2 percent interest in the Crystal Bay Club on Tahoe's north shore. Several other existing stockholders in the club are acquiring the interest.

The board also recommended a nonrestricted slot license at the Speak Easy Casino in Reno. The license will be held by Dynasty Games, which will lease and run the slot area at the club.

The Gaming Commission will have final say on the Crystal Bay and Speak Easy items at its Feb. 25 meeting.

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