The Showgate Hotel Casino is an accrual basis taxpayer and maintains its records on a calendar year. It has 3,000 slot machines, one of them a progressive machine whose jackpot increases based on the amount wagered. The casino guarantees that a person who hits the jackpot will receive the lesser of 5 percent of the amount wagered to date or $250,000. On December 1, 2020, the progressive slot machine reaches the $250,000 maximum payoff. The following January, a hotel guest wins the $250,000 jackpot.