that satellite entries (other than those held on the side of the final tournament) into the WSOP or other big event are treated as income regardless of how the winner does in the tournament, then I suspect much income is not being reported.

and I wonder that if the Department of Justice is correct in its short sighted view* that on-line gambling is illegal and immoral, but that there is no practical way to prosecute the "little" guys who daily play, why the feds don't go after those that win huge amounts of money?

* What a nearsighted view; we should permit US on-line gambling (or at least not call it illegal and let states run it, thus we would regulate the industry and collect taxes from on-line gambling. But no, we listen to the anti-gambling moralists and spin wheels while other countries make substantial income.