- IRS memo says entry fees for daily fantasy sports are gambling expenses
- DraftKings says IRS memo "non-precedential" and carries no force of law
- Memo is second from IRS on fantasy sports in less than three months
A U.S. Internal Revenue Service (IRS) memorandum published last week confirmed that the fees players pay to participate in daily fantasy sports (DFS) contests are gambling expenses, akin to wagers on horse races or poker.
The four-page memo, authored by IRS senior counsel Amy Wei, concluded the amount paid by a daily fantasy sports player to participate in a contest “constitutes an amount paid for a wagering transaction under 165(d)" of the Internal Revenue Code (IRC).
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