Fantasy Sports Cos. Should Plan Tax Defense After IRS Memo

Law360 (August 27, 2020, 2:47 PM EDT) -- The IRS recently released an internal memorandum that concludes that fantasy sports leagues, depending upon their format, may be subject to Internal Revenue Code Section 4401's excise tax on wagers.

Yes, People Actually Participate in Fantasy Sports

For the uninitiated, fantasy sports consist of "games where participants assemble simulated, 'fantasy' teams with rosters of actual players from real teams in a particular sports league," and compete with other simulated teams.[1] While versions of fantasy sports have existed since the 1960s, today they are almost exclusively internet-based and come in essentially two varieties: the traditional fantasy sports model and the daily fantasy...

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