Draftkings gives rewards to folks that bet at different levels. I assume that they are for customer retention. These gifts/rewards can be glasses, show tickets or gift cards. They are not gambling winnings. They do not provide any tax documents either. non-employee Gifts in general are not taxable. Are these?
From what you say, I believe this is a Reward that is treated as a rebate for your spending.
Rebates are not taxable on the cash value if it is considered a rebate.
Generally, you do pay taxes on prizes, awards, sweepstakes, raffle and lottery winnings, and other similar types of income as ordinary income, no matter the amount, but I don't think what you are describing is a prize.
From what you say, I believe this is a Reward that is treated as a rebate for your spending.
Rebates are not taxable on the cash value if it is considered a rebate.
Generally, you do pay taxes on prizes, awards, sweepstakes, raffle and lottery winnings, and other similar types of income as ordinary income, no matter the amount, but I don't think what you are describing is a prize.
It does seem to be a rebate as it is dependent on how much you spend. It is not linked to bets or lotteries or whether you win or loss.
I've looked through a bunch of tax docs and it doesn't seem like gambling "winnings" or lottery prizes. Any idea where I could find info about rebates?
thanks.
This IRS Publication talks about rebates - IRS Pub 525.