Strange Crazy Prize - lifetime daily comp to The Buffet @ Wynn Las Vegas

[inaminute]

PLAYER'S EDGE: Wynn, Encore awarding five winners a free buffet a day for life

"On July 29, five very lucky Las Vegans will win a lifetime comp for two to The Buffet at Wynn Las Vegas. Players can earn entries playing the slots at both Wynn and Encore, and the winners will be allowed to eat at The Buffet once a day for the rest of their lives. Again, this promotion is for Las Vegas locals only."

http://www.lvrj.com/neon/wynn--encore-awarding-five-winners-a-free-buffet-a-day-for-life-96126589.html

http://www.wynnlasvegas.com/#homepage/

I'm having trouble completely appreciating all of the aspects to this.

[Deb]

Interesting. I think it is pretty safe to assume a local will win that prize. I guess I should enter. I could use it as an incentive to get Dave to move to Vegas!!! lol :)

[meted]

Yeah I got an email about this promo in early June I believe. Sorry Deb you have to be a local to win this prize. I have a friend who is trying to win this, and I am like "Dude, it's not going to happen. I've been to my fair share of Wynn locals drawings and it's the same people who win everytime - usually the Video Poker Players. I actually haven't even put a cent into any of their machines recently, so it is safe to assume I won't be one of the winners. However if I do decide to play and win, I guess buffets will be on me anytime one of our members come to Vegas, ha

[inaminute]

also, wouldn't the winners end up with a 1099, which unlike a W2-G, you can't apply losses against?

i know we've discussed drawings here before, and the value of this at $30 a pop is around $11,000. so in paying federal taxes and even using it everyday, the "gift" would cost nearly $10 each time in fed. tax (assuming 28% tax).

and if it was only used half the year, double that.

and the point at which it would have been better not to have won at all would be using it only, oh who cares!!!!!

the point is, though, with the federal taxes, if it's not used enough, the winners will pay more than just paying full fare at the gate.

And I know my numbers in the second paragraph are off because it is a comp for 2, making the value near 22k (not 11,000), and taxes near 6k.

Please advise if this is way incorrect about taxes, break even point, etc.

And not only that, because this prize is annual, the taxes remain constant for years even if one's income in their later years was reduced.

[maxgirl]

It that even taxable? maybe there is no tax on food? lol I don't know. even so thats a strange prize, guess its cool for a local player.

[mst011m]

I bet there's not a tax issue. I doubt they'll calculate the total cost of the prize and who's to say the people will eat there everyday for the rest of their lives. They'll probably have some kind of a card or ID that gives them the meal when they go. Who really knows? I'd like the prize if I were living there.

[wordguy]

comps are not taxable - if so, those that use comps (hotel rooms, free food, etc.) would have a 1099 at the end of the year. :) Only hard cash or dividends, etc. are taxable.