If DFS is "gambling," and therefore illegal, they should go af (1 Viewer)

[Coolerheads]

oops, "They should go after the day-traders on Wall St. next."

Really, what's the difference? You are both buying shares on an immediate investment.

 

[urbanhack]

 

[Peyton Marino]

amazing insight i don't think anyone has said this before

 

[Tennessee_ATO]

oops, "They should go after the day-traders on Wall St. next."

Really, what's the difference? You are both buying shares on an immediate investment.

So you support DFS being as regulated as the stock market is with the Securities and Exchange Commission? You think all accounts should be registered with the government under a verified social security number? That deposits must be verified from a registered bank account (no credit cards) and held in a clearance account before they can be wagered (5-30 days), then, withdraws must also be similarly cleared (5-30 days) and each wager is reported to the IRS as soon as it's made? Profits and losses reported directly to the government?

Ever try to fill out a Schedule D after making just five or six trades in a year? Want to fill one of those out for every DFS entry you have over the course of a year?

Good luck.

That's for capital asset transactions though, not straight cash. I guess in some sort of survivor contest you could sell an entry to someone else for more value than your cost basis and an 8949 would be needed, assuming the DFS site allowed you to trade your entries (which they do not).

I'm not saying I agree with the whole "it's the same as day-trading" argument, just pointing-out that paying cash for an entry that can win cash wouldn't trigger the IRS obligations you are talking about unless there was a pretty serious re-write of that portion of the tax code. Coming under the regulatory umbrella of the SEC (again, not saying I agree with that concept) wouldn't trigger that IRS reporting obligation.