Evening star., 1951-11-02
The Law Itself Is a Gamble

1t is evident that the Governments efforts
TO register and impose special taxes on gambling
racketeers are headed for several kinds of trou-
bic. Hopes of sponsors of the new law for wide
spread voluntary compliance by Government
tearing gamblers are fading fast. Not only has
there been no rush of bookmakers, numbers
operators and other bet-takers to register and
pay their taxes but threats of court action to
test the constitutionality of the act have been
made. If the gamblers do not volunteer to obey
the law huge enforcement problem confronts
the Internal Revenue Bureau.
Although collectors Offices have handed out
punches OF newly printed forms and instructions
covering the 10 per cent tax on gambling profits
and registration for the additional occupational
tax of $50 year, they do not expect any imme-
diate returns. Gamblers have until December
to comply with the registration requirement and
pay their taxes. Until this 30-day period of grace
expires definite idea as to how the law is
working cannot be formed
The statute seems sure to 60 to the courts
Tor study OF its validity, criminal lawyers here
and elsewhere prepare to challenge the so-called
self-1ncriminatory aspect of the registration
clause. This provision was adopted only after
careful deliberation by committees of Congress-
which presumably were satisfied that it would
stand up in the courts. Under the registration
provision professional gambler must fill out a
form certifying that he is engaged in gambling
as an occupation and giving the names and
addresses of all his gambling places and of all
his employees. Each such gambler and each of
his listed employees then must buy $50 occupa-
tional-tax stamp, which must be displayed in the
place of business. And all of the registration in
formation is to be available for inspection by
police and other local authorities. The question
Of whefhpr fhiS iS IN Hie% ry;&1,
the Fifth Amendment, which protects citizens
from standardization in criminal cases, is
one which attorneys for gambling interests are
apt to make the most of.
Meanwhile, dispatches from widely scattered
points tell OF decisions by number of bookies
and lottery operators to quit the game, as they
face the dilemma of paying the heavy taxes or
risking the stiff penalties for non-compance
The law provides a sentence of five years in
prison and fine of $4,000 for convicted vio-
1ators of the 10 per cent tax requirement and
an additional fine of $4,000 for failure to register
One of the anomalies of the act is that If it
should prove successful as rime-suppression
measure, it will be dud as a revenue law
Sponsors of the legislation had predicted it
would bring in more than $400 million year in
additional taxes This was predicated on an
assumption that most gamblers would register
and pay the special taxes.
The next session of Congress will be in a
good position to judge the efficacy of the law,
both as a revenue producer and a weapon
against organized gambling. It will have a
better idea than the past session could have had
of the additional steps that should be taken to
insure reasonably adequate enforcement of the
act The Internal Revenue Bureau plans to ask
Congress for up to 1000 additional agents to
enforce the special taxes. The proper size of the
enforcement staff will depend largely on the