(a) The holder of a franchise to conduct electronic games of skill in this state shall register to withhold the gaming winnings tax under § 26-51-1309 from winnings from electronic games of skill in the manner prescribed by the Director of the Department of Finance and Administration.
(b) The withholding account used to report and remit the withholding on wages shall not be used to report withholding on winnings from electronic games of skill.
(c) A separate account for withholding on winnings from electronic games of skill shall be obtained from the Revenue Division of the Department of Finance and Administration.
(d) Each holder of a franchise to conduct electronic games of skill shall file a monthly return and remit the tax withheld from winnings from electronic games of skill on or before the fifteenth day of the month following the month in which the tax was withheld.
(e) The holder of a franchise to conduct electronic games of skill shall keep the following records and information for three (3) years after the date the tax becomes due or is paid, whichever is later:
(1) The total gaming winnings paid;
(2) The amount of gaming winnings tax withheld and remitted;
(3) The name, address, and social security number or taxpayer identification number of the party in receipt of gaming winnings; and
(4) The name, address, and Arkansas identification number of the holder of a franchise to conduct electronic games of skill.
(f)
(1) Gaming winnings are not includable as income on the payee's regular Arkansas income tax return.
(2) The amount of tax paid or withheld on gaming winnings under § 26-51-1309 shall not be claimed under the Income Tax Act of 1929, § 26-51-101 et seq., on an Arkansas income tax return to:
(A) Offset a tax liability;
(B) Create a refund; or
(C) Generate any other type of credit or offset for income tax purposes.
(3) Losses sustained from electronic games of skill wagers are not deductible under the Income Tax Act of 1929, § 26-51-101 et seq., on Arkansas income tax returns.
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