Quoted from Law:You will be - come tax season you need to declare your winnings at fair market value, no?
Yes but it will be nowhere near $1700, plus you can offset them.
Quoted from zr11990:Why would you do that. What they don't know doesn't hurt you.
Why risk it?
Quoted from Law:Pinside you might get away with (although I don't recommend it), but the OP also posted on reddit. I'd guess facebook as well. Organizations like this are also required to report winners.
You can declare the win at retail value then declare your gambling losses to offset the tax to zero (up to $6000 can be declared on losses). That's what I did to be legal.