Document: 354 U.S. 271 77 S.Ct. 1099 1 L.Ed.2d 1337 UNITED STATES of America, Petitioner,v.Walter KORPAN. No. 596. Argued April 25, 1957. Decided June 17, Rehearing Denied July 11, See 945, 1423. Mr. John F. Davis, Washington, D.C., for the petitioner. Robert A. Sprecher, respondent. Justice BLACK delivered opinion Court. The respondent, Walter Korpan, was indicted in a Federal District Court Illinois willfully failing to pay $250 per device tax imposed by 26 U.S.C. (Supp. IV) § 4461, U.S.C.A. 4461 on any person who maintains use gaming device. For purposes this tax, 4462(a), 4462(a) defines devices as: 2 'so-called 'slot' machines which operate means insertion coin * and which, application element chance, may deliver, or entitle playing machine receive cash, premiums, merchandise, tokens.'1 3 evidence at trial showed that Korpan maintained his premises number coin-operated gambling machines. These were played inserting into through slot. player then able shoot several balls onto surface interspersed with pockets holes. If he succeeded getting certain holes received varying free games. He had option either games cashing them designated rate. By extra coins could sometimes secure additional increased 'odds' (in other words, increase win). equipped electrical over period time controlled won. 4 district Judge found respondent guilty as charged fined him $750. Appeals Seventh Circuit reversed, holding respondent's did not come within definition laid down 4462(a)(2). 237 F.2d 676. On Government's petition we granted certiorari because case raised important questions administration revenue laws. 352 980, 382, L.Ed. 364. issue before us is whether petitioner included given (2).2 reasons stated hereafter believe they judgment setting aside Korpan's conviction ground must be reversed. 5 It clear operated persons cash also involved an chance sufficient meet requirements 4462(a)(2), although skill have some part successfully. In short, 'slot-machine' devices. 6 Respondent argues, however, when Congress used phrase machines' 4462(a)(2) it intended restrict scope section those 'slot colloquially known 'one-armed bandits.' describes latter releases lever handle turn, pulled activates series spring-driven drums reels various insignia painted thereon, usually bells fruit, automatically dispense combinations these are aligned. Government, hand, takes position cover all specific argues qualifying 'so-called' added (1) draftsmen apprehensive term might slang expression accepted proper English (2) wanted every slot even though go under label than machine.' 7 its face language related sections does manifest intent limit otherwise broad terms particular kind machine' is, if anything, more consistent advanced Government taken Korpan. And remainder well 4462(c), has affirmatively suggests designed include sorts regardless their structure method paid off players. 8 This interpretation supported relevant legislative history. Apart from amount imposed, substantially same original predecessor, 3267 Internal Revenue Code 1939, amended, 55 Stat. 722, 3267. Senator Clark, sponsor amendment became 3267, declared during Senate debates objective impose heavy 'any returns sort premium, intention amendment, committee adopting it.'3 report accompanied Clark's stated: 9 'The House bill places special $25 year upon each amusement premises. 10 'Your divides two categories. Upon so-called pinball token, reduced $10 year. machines, placed $200 year.'4 (Emphasis added.) 11 contends similar parts history indicative draw distinction between bandits' machines.5 We interpret history, demonstrating congression purpose place devices, structure, smaller purely offered no expectation receiving 'cash, tokens.' 12 administrative predecessors adds strength view. 1942 Treasury Department published interpretative regulations 'pin-ball' 4462(a)(2).6 ruling publicized trade paper industry. both 1954 representatives industry complained about Treasury's interpretation, still effect, asked amended so expressly excluded machines.7 instance left existing provisions standing, although, request others industry, provide exception penny-operated machines.8 13 adopted would restricted peculiar type device—the bandit'—even ingenuity, desire avoid taxes, technological progress multitude new permit but only different machine. convinced such meant distinguish 'slot-machines' exclusively amusement. 14 Reversed. 15 DOUGLAS dissents conclusion here meaning statute. full pertinent statutory read follows: 4461. Imposition tax. 'There shall permits of, occupied him, following rates: '(1) year, defined paragraph 4462(a); '(2) '(3) be, permitted. one replaced another, considered 4462. Definition '(a) general. 'As 4463, inclusive, 'coin-operated device' means— music coin, object, object operating tokens. '(b) Exclusion. bona fide vending incorporated features. '(c) 1-cent 'For dispenses prize, never prize retail value entitles cents, dispensed merchandise tokens, classified subsection (a).' interpreted unconstitutionally vague. contention without merit. 87 Cong.Rec. 7301. S.Rep. 673, 77th Cong., 1st Sess. 21. what see: H.R.Rep. 1040, 60; 1203, 18; 21; 6476, 7297—7307. 59 Treas.Reg. 323.22, T.D. 5203, Fed.Reg. 10835, Dec. 22, 1942. Hearings Committee Ways Means Revision 1942, 2d 2055—2061, 2682 2688; Finance H.R. 7378, 1132—1141; General Code, 83d 2505—2522; 8300, 1874 1879. 56 978—979.

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