NO Ross.

Any increase in wealth is taxable (basic premise of Federal Income Tax Code). The 10K won is offset by 10K loss. Even if casino does not fill out a form, or pays you in chips it is still a taxable increase in wealth. There are those in the IRS who think every individual win should be taxed, not taken as a group, thank goodness they aren't the ones making the decision. You could offset other wins with the amount of the original buy in to the satelite.

The better outcome would be, wion the Satelite, and then win the main event. You would pay more in taxes, but somehow it seems OK.