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Get your taxes done using TurboTax
Regardless of when the case settles, any settlement is not taxable income to you until the date you are actually paid.
For this specific settlement, because this is a reimbursement of costs you paid to purchase a "product" (in this case, gaming credits), the settlement would only be taxable if you previously deducted your purchases as a gambling or business expense, or if the settlement was for more than you originally paid.
a month ago