Same here! Just got a 1099-K from PayPal for over $100k but I didn't actually win $100k on the gambling site. It was a lot of withdrawls that made the total go so high. Theoretically, I could use PayPal to deposit $500 into the online casino and then immediately use PayPal to withdrawl the same $500, do that 200 times over and reach $100k in withdrawl transactions without ever actually gambling a penny of it. How does the IRS reconcile this? Do we enter the PayPal withdrawls reported on 1099-K as income from online gambling but deduct the PayPal deposits to reach a "net" income?
