Gaming Loyalty Programs - slot tournament winnings note

I was 2nd place in a a slot tournament at Caesars Palace in Apr. of 2007, and since I didn't have to pay to enter, I received a "1099-misc"; the winnings could not be offset against gambling losses--the full amount had to be declared as "normal" income:td:.

Ohhhhh...THAT'S how a slot tournament works. DOH!

I've been getting offers for slot tournaments for a few weeks, and I couldn't figure out how they would work. Seems obvious that the people who pay to play on the $5 slots are much more likely to win big bucks than the people like me playing on the penny or nickel slots.

I feel stupid for not realizing it was gambling w/ their money. Now I'm even more interested in going! :)


Thanks for this info, really good to know this.

Ohhhhh...THAT'S how a slot tournament works. DOH!

I've been getting offers for slot tournaments for a few weeks, and I couldn't figure out how they would work. Seems obvious that the people who pay to play on the $5 slots are much more likely to win big bucks than the people like me playing on the penny or nickel slots.

I feel stupid for not realizing it was gambling w/ their money. Now I'm even more interested in going! :)


Thanks for this info, really good to know this.

The machines are special tournament slots--each round generally has a fixed time (5, 10 or 15 minutes), when you press "play", the first time, a timer starts and counts down to zero, and then your score is recorded--you do NOT use any cash. There are also "buy in" tournaments, sometimes the prizes are huge $500,000 ie (but so is the buy in fee $10,000 or more.:td:)
PS: I've had invites to slot tourn. with an odd prize structure, generally the highest score gets first prize, but the others are randomly scattered: #18 gets 2nd prize, while #7 is third and #271 is fourth, as an example.

The machines are special tournament slots--each round generally has a fixed time (5, 10 or 15 minutes), when you press "play", the first time, a timer starts and counts down to zero, and then your score is recorded--you do NOT use any cash. There are also "buy in" tournaments, sometimes the prizes are huge $500,000 ie (but so is the buy in fee $10,000 or more.:td:)
PS: I've had invites to slot tourn. with an odd prize structure, generally the highest score gets first prize, but the others are randomly scattered: #18 gets 2nd prize, while #7 is third and #271 is fourth, as an example.

This "goofy" prize structure is designed to keep people in the casino. It would be too easy to tell (if your score was lousy) that you were out of the running after a few rounds. That person might leave. However, if 271st or 500th place won, everyone has a stake in staying no matter how poor your score is.

I've consistently placed #101 in tournaments. Payouts are for positions 1-100 :rolleyes:.

I was 2nd place in a a slot tournament at Caesars Palace in Apr. of 2007, and since I didn't have to pay to enter, I received a "1099-misc"; the winnings could not be offset against gambling losses--the full amount had to be declared as "normal" income:td:.

Sure they can. Find a better accountant.

QL

Sure they can. Find a better accountant.

QL

I use TURBOTAX to do my returns. 1099-MISC (at least from their "interview" method) gets lumped with other income. Only W-2G items have a gambling loss offset. Can you give me a clue of how one can get around this? There is a 3 year window for me to amend my tax return (which started with 4/15/08).

I use TURBOTAX to do my returns. 1099-MISC (at least from their "interview" method) gets lumped with other income. Only W-2G items have a gambling loss offset. Can you give me a clue of how one can get around this? There is a 3 year window for me to amend my tax return (which started with 4/15/08).

I suggest the book "Tax Help for Gamblers" by Chien and Scott.

You should be able to enter a gambling loss deduction on Sch. A for up to your total gambling win. So you must make sure the 1099-MISCs are listed as gambling income. One way to do that is to attach a statement breaking down line 21 and pointing out that the gambling 1099s are included in line 21. You may have to go back and forth with the IRS on this.

If you have a net win for the year greater than the amount of the 1099s it's not an issue. I recommend that method. :)

QL

Sure they can. Find a better accountant.

QL

Totally agree.

Came in first in a huge tourney at the V their first year and my accountant managed to offset it with my W-2G's. Something to do with how you were invited to/ qualified for the tourney.