Searching online I just found this:
W-2Gs: Debunking the Big Lie.* W-2Gs not required in poker tourneys (http://www.gambling-law-us.com/Articles-Notes/W2Gs-debunking.htm)
... This will undoubtedly result in operators of poker tournaments issuing Forms W-2G to and withholding income taxes from players who are paid proceeds (net of the buy-in to the tournament) of $5,000 or more at a 25% rate.
It looks like you're totally right, aliengenius.
But it seems like it came pretty close!