Draftkings is blocking my withdrawal and extorting me for my SSN (2 Viewers)

[kittenmittens]

Draftkings won't let me withdraw my money until I fill out a W9 for them which includes SSN. I don't trust giving these possibly shady organizations, let alone anyone else unless absolutely necessary, my SSN. I told them that's fine, I don't wish to be a customer anymore, give me the balance of my account. They refuse to return my money and close my account unless I give them my SSN.

DK admits I have not won more than 600 dollars so no tax reporting is required, but they refuse to release my funds unless I provide a W9. I understand that they have to collect this info now as policy. That's fine, I don't want to follow policy so I'm out and no longer a customer. They can't hold my money until I follow some policy they created when I don't want to be a customer anymore.

I simply want to end our business relationship due to their policy of collecting SSN just in case I win a lot. Draftkings is holding my money hostage by refusing to let me cancel my account.

This is absolutely ridiculous. I just don't give out this information to anyone, and especially not Draftkings after this little stunt.

 

[AquaBliss]

I wonder if they do any validation of this before allowing the withdrawl. Or if there is even any system which lets them validate? What if you just enter your SSN but 2 or 3 of the numbers are a couple digits off. Oops, must have been a typo.

 

[Fresh Prince of Bel Nor]

Yeah, as someone who didn't get paid in the Phenoms scandal, I have pretty much withdrawn my winnings after each week from Draftkings and a smaller DFS site I play, leaving a small balance to play with. As such, I only have $30 in my Draftkings that I planned on cashing out after week 16 and was shocked/annoyed when I say the new policy. I am not sure when they put it in, but had to be near the end of the season.

I refuse to give my SS for such a small amount. I guess I will leave it in there and play cheap single entry tourneys next season until I either use it up or hit a good lineup that makes cashing out worth it.

I know this, I will not be putting another dime into the account beyond what's there. There are other places to play...maybe not with the huge, lottery-style prizes, but with better service and with actual overlay in some contests as well.

 

[GreenNGold]

If they are going to require it to withdraw a small amount of money they should require when you deposit, that way you can choose if you want to become a customer or not instead of getting money stuck on the site like this.

 

[kittenmittens]

Yeah i am tempted to just fill our the form with blank spaces or underscores or something, the electronic equivalent of leaving it blank but not providing false information. It worries me because it is one of those forms that says it wants an eSignature and says I sign under the penalty of perjury.

I could input garbage data and in the signing form put something other than my name (like NOT MY SIGNATURE) but if it's a federal form I wouldn't be surprised if that's a federal crime, and it might not even work if they validate it at some point.

 

[reel_smooth]

Just a guess, but, I'm thinking that it's very possible that this is being mandated, somehow, by the IRS, so that they can track it for reporting purposes from tax returns. Either by the IRS or whatever state you live in.

 

[kittenmittens]

What I think is happening is that the IRS is requiring that they be able to accurately process tax reports for people who have won over $600. My issue with it is that they are applying that to everyone and not just those who have are tax liable, which to me seems to be a grab at personal info that they don't need. They can very easily see how much a player has won and apply the requirement only to those users - assuming the IRS isn't requiring that the apply it to everyone - which I admittedly don't know. I wonder if it's more than the IRS, because it could be money laundering or something too which I thought of when I wondered "what, is DK a financial institution that needs my friggen SSN now???"

Either way, it seems pretty shady even if it isn't... and for those who haven't had their funds locked until you give them your SSN, this is a head's up. I wouldn't put it past well-meaning regulators to impose something like this, but I would have appreciated a warning before it became a DK policy that held my funds hostage until I give my SSN to a site I don't plan to use anymore.

 

[Tennessee_ATO]

What I think is happening is that the IRS is requiring that they be able to accurately process tax reports for people who have won over $600. My issue with it is that they are applying that to everyone and not just those who have are tax liable, which to me seems to be a grab at personal info that they don't need. They can very easily see how much a player has won and apply the requirement only to those users - assuming the IRS isn't requiring that the apply it to everyone - which I admittedly don't know. I wonder if it's more than the IRS, because it could be money laundering or something too which I thought of when I wondered "what, is DK a financial institution that needs my friggen SSN now???"

Either way, it seems pretty shady even if it isn't... and for those who haven't had their funds locked until you give them your SSN, this is a head's up. I wouldn't put it past well-meaning regulators to impose something like this, but I would have appreciated a warning before it became a DK policy that held my funds hostage until I give my SSN to a site I don't plan to use anymore.

Remember, you have to pay taxes even if you made less than $600, so the griping about providing your social probably won't move the needle with anyone at any level of the gub'mint. Also, specific states may have other reporting requirements.

If I were running those sites, I would demand a social from everyone playing for 2 reasons: (1) ensure I don't miss reporting on someone I should have reported and (2) ensure players are who they say they are. As soon as stories come out about a 14 year old playing, the public outcry will be deafening.

 

[Mystery Achiever]

Heads up that it is not just DK. I went through this with Fanduel today.. I have a $14 balance. They won't let me withdraw it without ss# since it is all winnings (vs. unused deposit?), even if I am closing the account. They will let me close the account with the balance and said I could re-open it in the future. I think that means I'd retain the balance, but didn't clarify because I can't imagine doing that. I'll either leave the account and play at some point or just forfeit the balance. At least it is not much money and I did get out of DK before the changes.

 

[MikeMan]

Anywhere that holds cash for one person and pays out to another should require SSN. I'm not sure if that's the law or not but seems commons sense, at least from a money laundering perspective.

You and I play h2h over time for $100,000. I deposit, you withdraw, and money is clean @ 10% cost. Thanks Fanduel.

Either that or I've watched too much Breaking Bad.

 

[Mystery Achiever]

Interesting angle! It is just unfortunate that there is no accommodation for people who might have chosen not to deposit/play under the new rules. That does create a hostage angle, although I think FD, would give you back un-spent deposit - just not winnings.