United States v. Hughes Properties, Inc. (1985)
- Docket
- 85-554
- Decided
- 1985-01-01
Summary
Question: Can Hughes deduct the fixed jackpot amount as a business expense at the end of each fiscal year? Conclusion: Yes. In a 7-2 decision, Justice Harry A. Blackmun wrote the majority opinion affirming the lower court. The Supreme Court held that the jackpot amount was fixed by the state regulation, so it could be deducted as a normal business expense. The Court felt that not knowing identity of the winner or the time it would be paid was irrelevant. Justice John Paul Stevens wrote a dissent, stating that the jackpot amount was contingent, because the casino could avoid paying out altogether by declaring bankruptcy or forfeiting its gaming license. Chief Justice Warren E. Burger joined the dissent.