Minn. Supreme Court Lets Gambler Deduct Losses

ST. PAUL – A Minneapolis woman took a gamble with the Minnesota Supreme Court — and won.

Estelle Busch claimed she worked 60 hours a week at gambling, and that her losses should be tax deductible.

Busch says over three years, she won $1.5 million and lost $1.7 million. But the state wouldn't let her deduct her $200,000 in gambling losses.

The Department of Revenue wanted Busch to pay $102,000 in back taxes. But the 72-year-old went to the Minnesota Supreme Court, arguing she was running a business.

The court agreed and said Busch didn't owe back taxes.