Unintended Consequences. When Regulatory Acts Reclassify Daily Fantasy Sports

What regulatory acts are being identified as re-classifying Daily Fantasy Sports as gaming/gambling?

• The IRS. A General Advice Memorandum compares daily fantasy sports companies to sports gambling companies and are thus “liable for the excise tax on wagers” 
• Colorado Department of Regulatory Agencies is transferring oversight of Daily Fantasy Sports from Director of the Division of Professions and Occupations to the Director of Gaming

Potential impact:

• Litigation from larger operators
• Burden of entry for smaller, startup daily fantasy sports operators

Forbes | Recent Attempts To Reclassify Daily Fantasy Sports As Sports Gambling Could Hurt Industry’s Bottom Line