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That is correct PayPal acted like a checking account in this instance. 

I never received a W2G for any website at all. Simply just the 1099k. But thanks for the Info. Based of that info it sounds like yes I can report the income on the 1099k as other income than just simply back it out since I lost more than I received by a larage amount and wouldn't have to pay taxes on that income since it was all gambling and at a loss 

 

thanks for the info