For many casinos which give out cruises, cruises are treated the same as
any sort of comp or gift - no 1099 form, and theoretically no tax. For
Harrah's gift certificates for cruises you end up paying some amount for the
cruise, so it is more like a discounted cruise than a gift, and thus
definitely no tax I would say. Whether the casino gives you a keychain or a free
buffet or a free room or a free DVD player, right now they don't give out any
sort of tax form, and the general assumption seems to be these are
non-taxable comps.
However, occasionally a casino will give a higher priced gift, such as a
cruise, and give you a 1099Misc form for it. For example some years ago I
received a cruise with airfare from the Venetian, and it included a nice 1099
Misc. form. The next year a similar free cruise with no airfare or cost
from Harrah's came with no 1099.
The best thing to do is to ask the casino in advance if you will receive a
1099 for the cruise (or other big gift).
As for the general taxable value of comps or gifts, if any, you need to
consult a tax accountant, or do what most of us do when trying to figure out
tax laws regarding gambling that seem woefully outdated and not well
specified -- guess! (and maybe consult tax court rulings or books on taxes
such as the one by Jean Scott, etc.) I believe most casual gamblers do not
report comps as income. I'd be willing to bet that all the small gifts that
casinos give out such as tote bags, jackets, keychains, plates, screwdriver
sets, etc. etc. definitely never get reported.
If you do get a 1099 Misc. form for any gift (or slot tournament, etc.),
you do need to report that.
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