court made a distinction between the lower court's determination of law and determination of fact. The determination of the dominant reason that explains the player's action in making the transfer was a matter of law for the lower court that would not be reversed because it was not clearly erroneous. The determination that such dominant reason requires tax treatment as a gift is one of law, to which the appeals court does not owe deference. The Court decided that such payments by the players in casinos are not motivated by "detached or disinterested generosity," but instead was an "involved and intensely interested act" motivated by a hope that such a "tribute to the gods of fortune" would be "returned bounteously." The Court enumerated a number of factors to consider in making the determination that the tips should be reasonably regarded as compensation for services, including: the regularity of the flow the equal division of receipts, and the daily amount received The Court announced a generalization that: "receipts by taxpayers engaged in rendering services contributed by those with whom the taxpayers have some personal or functional contact in the course of the performance of the services are taxable income when in conformity with the practices of the area and easily valued." Clearly, tips to dealers fit this description. As such, the tips should be included in gross income. Importance The importance of this case is the creation of a set of factors that the Court created to evaluate these types of cases. While the giver's intention can be difficult to ascertain, objective factors like the regularity, division, and amount of tips are less subjective. Also, the Court made the easy leap from tips to "tokes," and indicated that the very strong similarity to tips made them income. This strong similarity exists, despite the fact that the casino workers are not "compensated" for performing any specific service to customers. References External links United States Court of Appeals for the Ninth Circuit cases United States taxation and revenue case law 1976 in United States case law