To All,
I just received an email asking me to answer the question about individual satellite wins.
O.K. here goes.

All income is taxable from any source unless specifically excluded .......Section 61 - Internal Revenue Code.

Let's say I buy in for $1,000 and win a seat in the $10,000 event. Is my win of $10,000 taxable?
Yes it is regardless of whether I receive the $10,000 in cash, chips, a buy in chip or whatever.

It makes no difference whether or not I can sell it it, give it away or it becomes valueless if I don't personally use it.

The fact is you won a prize the FMV of which is $10,000. This is the amount you must include in income whether you play in the main event or not. Regardless if you sell it, lose it or play in event and win more money. If you itemize you can reduce it by the $1,000 buy in. Hope this helps!
Jim