What Was Sam Farha Thinking?

[michiganlaw]

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Maybe I'm mistaken, but I was always under the impression that chops were okay'd and confirmed by casino employees. Therefore, if three people chop, the amount of the chop and the amount remaining that they'll play for is determined and recorded. That way, nobody takes an extra tax burden, and everything's kosher with the IRS. Isn't this how it's done? It's not just a oral agreement between two or three people, right? So given that fact, there's no way your theory is correct.

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This is absolutely not true. "Under the table" agreements occur all the time. While I'm sure there are instances of the casino being informed of the chop, I know for certain that the Imperial Palace had a $500 buy-in tournament, June 25th, and I met the guy who placed 2nd right after meeting Farha. I told this guy what Farha said, and immediately the guy suggested my theory. He explained that he avoided tax liability himself the weekend before and that the top six finishers had an "informal" agreement to chop...no casino's involved, an agreement they reached during one of the 10 min breaks.