Hi Arron,
For the sake of not being impolite and not responding at all, I will attempt to answer your question. A satellite is a separate and distinct event from the tournament. Therefore, each must be treated for tax purposes separately. Yes, losses can be offset against gains however, only if you itemize and only to the extent of the gain reported.

You cannot offset losses against gains and report a net figure. You must report the total gross gaming win and deduct your total loss against it. It is the correct way of handling the transaction for tax purposes.
Jim CPA