As I often say, with most people ignoring me, our beautiful country has a tax on income, not on pieces of paper.  In this case, I would add that the piece of paper is not a 1099, but a W-2G.  I wonder why they used the W-2 terminology, which goes back to the days of the W-1 being an employment tax return.  Maybe to comfort the professional gamblers, who see it as their job?

https://procedurallytaxing.com/some-tax-history-whatever-happened-to-the-w-1/