Daily Fantasy Sports Dues Count As Wagers, IRS Says

Law360 (October 16, 2020, 5:10 PM EDT) -- Money that individuals pay to participate in daily fantasy sports leagues qualify as wagering transactions and can therefore be subject to write-offs provided by the tax code, the Internal Revenue Service said in a memorandum released Friday. 

Entry fees that participants pay in order to compete in daily fantasy sports leagues constitute wagering under Internal Revenue Code Section 165(d), the IRS' Office of the Chief Counsel said in its memo. The transactions qualify as wagers because winnings and losses follow from the resolution of an uncertain event, the agency said. 

"DFS transactions are similar to poker and other wagers in which...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!