online sweepstakes slots

Hi, Someone in my family won $XXk+ in online slots/sweepstakes but also spent about $Xk playing. My understanding is the non-casino, sweepstakes site will not be sending a 1099 but the person needs to file the wins and the losses with their taxes because the difference is considered income/profit? Does it matter that it's not a licensed casino but a sweepstakes site?