"And that is why it is my position that none of should have to pay taxes, until the IRS completes their instructions"
Do you know of any other legal venue, that you can make money in, and not account for it?
W2G reporting is accounting for your win's and loses.

Like Jim, I have been involved in this thing from the start.

IMO, the IRS completed their instructions in the Binion's closing agreement. In it, they gave up 28% witholding if the casino would issue W2G's at $600. 28% witholding was a big consession on the IRS's part.
BTW, Binions was not the only casino to sign on to the agreement. The Gold Coast also signed the same agreement. A couple of the big CA casinos signed on. The 4Q's had a verbal agreement in 96 and would have signed on if I had not left there.