Play in the Wynn tourney and poay in the $500 tourney at the Belaggio. You'll be a bit short with the $1k, but close enough. Maybe he'll pony up the difference if you spell it out for him. Otherwise, just chip in the extra yourself.
And yes, typical terms would be that you pay him back his $1k first and then split what's left 50/50. Whatever you decide, MAKE SURE you are both clear about the arrangement before you leave.
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