35 Miss. Code R. § 3-11-22-304
The thresholds for withholding vary for tournaments, other than those for slots, Bingo, or Keno, such as poker tournaments, depending on the odds involved in the tournament, the amount of the proceeds won and whether there is an entry fee. In regard to these other tournaments, gaming establishments shall withhold and remit based on this chart:
Tournament Reporting and Withholding
Footnote:
* Proceeds are reduced by the wager (entry fee paid).
* If the entry fee is paid by the participant, only a W-2G can be issued (tournament contributions by the company are irrelevant).
* Reporting and withholding is not triggered until the participant cashed out (final round).
* For reporting and withholding requirements under the IRC on gambling winnings of nonresident aliens, see instructions to IRS Form 1042-S and IRS Publication 515 or any replacement thereof. The gaming establishment should substitute a 1042-S for the W-2G or 1099 MISC.
Examples:
* Patron pays tournament entry fee and wins satellite tournament. Patron receives no cash but does move on to next round. W-2G reporting and withholding is only triggered when patron cashes out. The reportable amount is reduced by the entry fee (subject to above flowchart).
* Patron pays tournament entry fee and wins tournament. Patron receives no cash but does receive a paid (comp'd) entry fee to a third party tournament. Patron gets a W-2G for the value of the comp reduced by the original paid entry fee. Gaming establishments may have to gross up the W-2G for Mississippi withholding tax purposes.
* Gaming establishment comps a tournament entry fee for a patron. A 1099 MISC must be issued for any payout of $600 or more. The reportable amount is not reduced by the comp'd entry fee.
35 Miss. Code. R. § 3-11-22-304