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...
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