Some of the organization’s employees might spend 100% of their work time on activities related to gambling. If an organization OWNS its site, others such as bartenders might spend only a portion of their working time on gambling-related activities.
To determine the percentage of compensation to claim as an allowable expense, conduct a time study. In the time study, document how much actual time each employee spends on activities related to the conduct of gambling compared to the amount of time spent on all other activities.
EXAMPLE: An organization owns its site and employs ten bartenders.