I agree with @Opus 17
the TAM
ISSUE:
Whether winnings from a "no purchase necessary" marketing sweepstakes are gains
from a wagering transaction pursuant to § 165(d)?
2
TAM-145576-03
CONCLUSION:
The taxpayer’s winnings are not gains from a wagering transaction for purposes of
§ 165(d) because the taxpayer did not furnish consideration for the chance to win the
prize.
this is really no different than winning a prize on a game show.
in your situation it seems you must furnish consideration to win and if you lose an amount is lost.
