IRS Doubles Down on Taxing FanDuel, DraftKings as Gambling (1)

The IRS is moving forward with its plan to treat fantasy sports operators like FanDuel and DraftKings as gambling companies, a position that stands to cost the operators millions of dollars a year in excise taxes.

In a recent memo, the agency reasserted claims it made this summer: Daily fantasy sports are a form of wagering for tax purposes, and are therefore prone to a federal excise levy on wagers.

Much like sports betting, which is legal in nearly half the country, each state takes its own position on daily fantasy sports, although many treat the former as ...