Are gifts or rewards for being a good customer taxable?

[redwine2]

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?

[CatinaT1 · Accepted solution]

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.

[redwine2]

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.

[CatinaT1]

This IRS Publication talks about rebates - IRS Pub 525.