I suggest getting friends' and family's recommendations for a practicing tax CPA in your area and show him the case law cited by @dakrebs . If CPA agrees, (or possibly visit IRS in person for this?) enter or add the 1099 amount to gambling winnings on line 8b schedule 1 and then you can use the itemized deductions of your win/loss statements. I don't agree with the pedantic statement that "a prize is a prize" because the types of wind are almost always predicated on participation on gambling activities.
