Compensation (wages) paid to an organization’s employees for the percentage of time spent on activities directly related to the conduct of gambling is an allowable expense. Compensation includes the following:
Bar operation—At a bar operation, an organization may compensate an organization employee for the conduct of tipboards and paddlewheels if the games are limited to 32 tickets or less per game and the frequency of the activity is one day or less per week. If conducted more than one day a week and compensation is paid, then the operation is considered a booth operation and the lease must be amended because booth rent limits would then apply.
A compensated employee may not be a lessor, a lessor’s employee, or a member of the lessor’s immediate family. An employee of a lessor may be compensated by an organization for conducting gambling at sites not owned by the lessor.
An organization may compensate an employee of a lessor for gambling-related activities that are not related to the site owned by the lessor.