You need to get your facts straight and wake up. Whoever wins the cup will receive roughly $600. That is nowhere near the actual amount that someone would actually need to declare as income. Making statements like yours may confuse people interested in participating.
For example, I've sold multiple items, ranging from designer clothing to old gaming consoles(etc). All of those I have sold for ~$500/each, all cash (or paypal). None of which have I declared as "income". Now, you may be saying, "but you sold a good! you didn't receive the money for nothing!". That is true, but you need to understand the key concept here. I have deposited cash in the $500-$1000 range multiple times to my bank, not declaring anything.
What you need to understand is that people deposit cash all the time, and receive cash all the time, for sometimes absolutely nothing! Now if you were to receive a briefcase of $40,000 and went to deposit that in the bank, you will need to take action, but for these nominal amounts (talking about the whole scheme of things, for the twink cup it is actually unreal!), nobody will need to declare it and pay taxes on it.
To further express my point, say you were to sell your own WoW account for an astounding $750. Would you need to pay taxes on that? Absolutely not. Now I am not saying I know the law perfectly, but I have common sense and think logically. The government is not capable of looking into everyone's personal finances and tracking every dollar that goes in and goes out. I know "technically" you are supposed to report every dollar you make, but that is literally impossible to enforce.
Final example. In my entrepreneurship class at university, we ran a small business for 10 days and we generated $2000 in revenue. We each took home $500 in profit (3 of us, $500 expenses). None of us declared anything. Money went towards booze, clubs, etc., point is that the money came and went, simple as that.
I am writing this to clear up the confusion and to put anyone who was worried minds at rest. For 99% of the people on this site, receiving $600 though paypal, on presumably multiple payments, will be fine. If you are one of those people who are a stickler for the rules and feel compelled to report it, go ahead. But for the rest of the winners, enjoy.
