Originally posted on 11/15/2013:

Quote Originally Posted by pavyracer View Post
Are the points cashed out considered as income by IRS? Do we have to pay taxes on them?
Grey area I think...not a big enough issue, but the IRS has been nit-picking things like airline miles and CC rewards in recent years...something like this could very well technically fall into taxable income category.

That being said, they wouldn't find out about stuff like a gift card unless you reported it. Only stuff that goes through a bank account (sportsbook or fantasy cash when withdrawing) would be likely to show up.