Internal Revenue Code · 26 U.S.C.

§ 4421. Definitions

In force Text current through Public Law 119-121 (October 9, 2026) release point 119-121

Official text, no changes From the Office of the Law Revision Counsel, release point 119-121 (current through Public Law 119-121 (October 9, 2026)). Compare it with the official text at uscode.house.gov (external site).

Cite as 26 U.S.C. § 4421

At a glance

Read from the text, the source credit and the official notes. Not part of the law.

Status: In force
Length: 2 subsections · 171 words · about 1 min to read
Defines: 2 terms
Cross-references: cites 2; cited by 2 Code sections and 1 other regulation
Regulations: 1 issued under this section

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.)