A New York State ALJ has found that an individual taxpayer was not engaged in the trade or business of being a professional gambler, and therefore he could only claim gambling losses as a miscellaneous itemized deduction on Schedule A of his personal income tax return, subject to a 50% reduction under Tax Law § 615(f). Matter of Kayata, DTA No. 825935 (Div. of Tax App., Feb. 11, 2016). First, the ALJ noted that the itemized deduction reduction provision in Tax Law § 615(f) for gambling losses is valid, and has been specifically upheld by the Tax Appeals Tribunal against similar challenges. With regard to Mr. Kayata’s status, the ALJ found that although he gambled regularly, winning and losing large sums of money, he had failed to establish that he was a professional gambler (which would have allowed him to claim business losses without the 50% limitation), citing such factors as the absence of detailed records tracking gambling activities and related expenses, the fact that his losses consistently exceeded his winnings and Mr. Kayata’s primary business activities and income as a chiropractor, which the ALJ concluded financed his gambling activities.