Is paying a fantasy sports entry fee considered a wagering transaction for tax purposes? According to the IRS, the answer is yes. In a Chief Counsel Advice (CCA), the IRS has determined that the entry fee paid by individuals to participate in a daily fantasy sports (DFS) contest is an amount paid for a wagering transaction. According to the CCA, the DFS entry fee meets the definition of “wagering transaction” because there’s an uncertain event (such as the live performance of individual players), and participants win or lose depending on the outcome of the uncertain event. This is consistent with the U.S. Tax Court’s interpretation of the term “wagering transaction.” (CCA 202042015) Call or visit our website for more information! www.mjscpa.com/
