Is rakeback taxable?

[Newt_Buggs]

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BTW, I am so tired of tax discussions that suggest rake is some sort of expense. Rake is taken out of the pot before anyone wins it. If you put $20 in a slot machine and $98 comes out you just won $78. If you put $20 in a pot and the dealer gives you $98 at showdown you just won $78. The other $2 that was raked is money that never belonged to you and which you didn't win. It has nothing to do with your taxes.

That's why the rebate argument is spurious. You never paid in the first place.

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What about tournaments? When I play SNGs I have to pay $15 straight to the house along with the $200 entry fee.