Can I report a deduct gambling losses on Schedule A to offset 1040 "other income" (prize reported by casino on1099MISCbx3)? Taxpayer was given ticket representing chance to win if present when they called his ticket number-later that day casino called his ticket number & he won $3,000 prize-casino treated as a sweepstakes with no wager so reported on 1099MISCbox3 (not W2G).  If I can substantiate that taxpayer had $3,000 gambling losses, can I report the $3,000 gambling losses on Schedule A?  The way ProSeries includes 1099MISCbox3 in "gambling income" (part of "other income"), it looks like ProSeries says the $3,000 income is gambling so I can take the $3,000 gambling losses on Schedule.  Initially I thought there would have to be consideration given by Taxpayer (ie, a wager) in order for it to be considered gambling; but apparently, just coming into the casino is enough "consideration" provided by taxpayer to make the $3,000 winning in this example "gambling income".