Aladdin's Castle, Inc. v. Director of Revenue

HOLSTEIN, Chief Justice.

The Director of Revenue appeals a decision by the Administrative Hearing Commission (AHC) holding that Aladdin’s Castle, Inc., (Aladdin) was not liable for use tax on prizes awarded to customers at Aladdin’s twelve arcades in Missouri. The question presented involves the construction of §§ 144.605(13), 144.610, and 144.615. 1 The decision of the AHC is affirmed.

I

Aladdin’s customers purchase tokens, which are deposited into machines to play arcade games. Aladdin pays a sales tax on the gross receipts from the sale of the tokens. For some games, tickets are awarded that…