Prizes and awards.
If you win a prize in a lucky number drawing, television or radio quiz program, beauty contest, or other event, you must include it in your income. For example, if you win a $50 prize in a photography contest, you must report this income on Form 1040, line 21
. If you refuse to accept a prize, do not include its value in your income. Prizes and awards in goods or services must be included in your income at their fair
I think the bolded part gives you your answer - the instructions are telling you to report it on a different line than where you would report gambling losses. So I don't think you can offset.
This post was edited on 1/29 at 11:32 am