Bob, I think what Gene meant when he said the casinos pay sales tax....is that when the casino purchases the chips, they pay sales tax on that transaction.

Since the casino does not sell chips, they would not charge the person getting the chips sales tax, since there is no sale.

Now once a person has a chip in their possession, and they decide to sell it, they are then required to charge sales tax on the sale. The amount they charge is different then what they turn in to the state. The collector of the sales tax gets to keep a small percentage (usually a quarter of one percent) as a small payment for collecting the sales tax for the state. The sales tax would be on the entire price, not the amount over face.

The income tax that the vendor would be required to pay would be on the amount of profit on the chip.

Even though the income tax is really done by the year, there are quarterly estimated income tax that are typically done.

Besides my business of the Sleep Disorders Centers, I also have a side business as a stained glass artist. I have a vendor's license under my name: Terry Shaffer dba: Shaffer Art Glass. For those that aren't familiar, the "dba" is for "doing business as".