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In the United States and prominent daily fantasy sports operators FanDuel Group and DraftKings Incorporated could reportedly be in trouble after the Internal Revenue Service (IRS) ruled that such firms are to be required to pay federal excise tax on their entry fees. This continues until the player hits the same multiplier two times or hits one of the jackpots. This court case purportedly found that such entry fees were outside the definition of a sportsbetting wager although it had focused on season-long fantasy games rather than one-off contests....
We believe that the arguments at the federal level are incredibly strong. The slot also introduces a Gamble feature for the first time where every winning spin offers a double or nothing function.Robins reportedly declared…“Our position continues to be, which we believe has been reaffirmed through state legislatures and courts throughout the country, that daily fantasy sports is not wagering....
In this round, players have the opportunity to win based on three different jackpots. This court case purportedly found that such entry fees were outside the definition of a sportsbetting wager although it had focused on season-long fantasy games rather than one-off contests.”Litigious lifeline:However, Bloomberg reported that the IRS’ latest stance on daily fantasy sports is at odds with the 2007 ruling from the United States District Court for the District of New Jersey in the matter of Humphrey v Viacom....
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In the United States and prominent daily fantasy sports operators FanDuel Group and DraftKings Incorporated could reportedly be in trouble after the Internal Revenue Service (IRS) ruled that such firms are to be required to pay federal excise tax on their entry fees.According to a Friday report from the Bloomberg news service, the decision was revealed via an internal memo from the federal authority and could result in the two daily fantasy sports behemoths becoming liable for millions of dollars in unpaid taxes and late payment fees.Defective approach:Jason Robins, Chief Executive Officer for DraftKings Incorporated, reportedly used a Friday conference call with investors to proclaim that the IRS is ‘deeply flawed in its analysis’ of what actually constitutes a sportsbetting wager and that its latest stance will not be binding in court should a daily fantasy sports operator be audited....
