---
kind: "range"
citation: "26 U.S.C. §§ 4421–4423"
title: "26"
from: "4421"
to: "4423"
count: 3
release: "119-102"
url: "https://uscodex.org/usc/26/4421..4423"
---

# §4421. Definitions


For purposes of this chapter—

- (1) **Wager—** The term “wager” means—
  - (A) any [wager](#1) with respect to a sports event or a contest placed with a [person](/usc/26/7701.md?p=a-1) engaged in the business of accepting such [wagers](#1),
  - (B) any [wager](#1) placed in a wagering pool with respect to a sports event or a contest, if such pool is conducted for profit, and
  - (C) any [wager](#1) placed in a [lottery](#2) conducted for profit.
- (2) **Lottery—** The term “lottery” [includes](/usc/26/7701.md?p=c) the numbers game, policy, and similar types of wagering. The term does not include—
  - (A) any game of a type in which usually
    - (i) the [wagers](#1) are placed,
    - (ii) the winners are determined, and
    - (iii) the distribution of prizes or other property is made, in the presence of all [persons](/usc/26/7701.md?p=a-1) placing [wagers](#1) in such game, and
  - (B) any drawing conducted by an organization exempt from tax under sections [501](/usc/26/501.md) and [521](/usc/26/521.md), if no part of the net proceeds derived from such drawing inures to the benefit of any private [shareholder](/usc/26/7701.md?p=a-8) or individual.

# §4422. Applicability of Federal and State laws


The payment of any tax imposed by this chapter with respect to any activity shall not exempt any [person](/usc/26/7701.md?p=a-1) from any penalty provided by a law of the [United States](/usc/26/7651.md?p=1) or of any [State](/usc/26/7701.md?p=a-10) for engaging in the same activity, nor shall the payment of any such tax prohibit any [State](/usc/26/7701.md?p=a-10) from placing a tax on the same activity for [State](/usc/26/7701.md?p=a-10) or other purposes.


# §4423. Inspection of books


Notwithstanding [section 7605(b)](/usc/26/7605.md?p=b), the books of account of any [person](/usc/26/7701.md?p=a-1) liable for tax under this chapter may be examined and inspected as frequently as may be needful to the enforcement of this chapter.