Gambling winnings are calculated on the fair market value of the prize. As to whether the casino has to report the winnings when it awards chips or when it cashes those chips, I think we all know that in practice the casino does not present you with a W2 when you walk away from the table with chips in hand. On the other hand, there is nothing saying they couldn't do it at the table if that's what customers prefer (ha!). The timing isn't as important as the fact that you will not be able to cash those chips in without implicating the reporting requirements.

A casino that avoids all paperwork, receipts, and paper trails is called what . . .?