Green’s Dictionary of Slang

1. (US gambling) one who takes a percentage from a game of chance [cut v.⁶ (3)].

1963

in T.I. Rubin Sweet Daddy 100: Cut games and it’s the cutter makes the cabbage.

2. (US drugs) one who ‘cuts’ pure drugs prior to sale [cut v.⁶ (4b)].

2006

G. Pelecanos Night Gardener 111: Addicts, testers, cutters, and prostitutes were inside to the extreme.