Just wondering. If you win in one of those promo chip tournaments. Say for instance, you win $10000 in promo chips. Do you have to pay taxes on the $10000 or the amount you can win with them? What does the IRS say?
The Golden Nugget advertises their chips as tax free, and you can receive them in lieu of cash, and not get a 1099. I would think they did some research on this before blatantly advertising this way, but I don't know that for sure.
You should pay tax on the income generated, not the potential. Whatever you convert to, that's your taxable income.
I've played the Golden Nugget Laughlin Tournament twice this year and was lucky to place 3rd in one. They do 1099 everyone and pay in normal play chips. I've not seen them advertise their tourny as being paid in tax free chips, please point me to this area. TLR
We're talking about promo chips. Some casinos pay part of the prize money in these chips. You can't cash them in like regular chips. You have to play them. Usually one use chips. Play them win or lose you lose the chip.
The most recent invitation to the Las Vegas Golden Nugget June tournament reads $100,000 Prize Structure paid in cash, tax-free "play till you lose" promo chips or free slot play. You decide. For the past year all their tournaments have been advertised this way.
Ok, that's fine. I was asking about & making comments about the Laughlin Nugget, because the poster didn't mention which Nugget casino. Also I do know what promo chips are TLR
