Gaming & Hospitality Legal News, Volume 12, Number 14: Internal Revenue Service Makes Determination Regarding Tax Liability for Daily Fantasy Sports Operators and Potential Write-Offs for Players

In recent months, the Office of Chief Counsel of the Internal Revenue Service (“IRS”) has published guidance concluding that Daily Fantasy Sports (“DFS”) contests are wagering transactions for U.S. federal tax law purposes. The IRS conclusions were not surprising, based on long-standing federal tax law authorities. On July 23, 2020, the IRS issued Legal Advice by Associate Chief Counsel (the “Memorandum”) addressing the applicability of wagering excise taxes to DFS operators....
By: Dickinson Wright

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