American daily fantasy sports firms receive alarming tax news

In the United States and prominent daily fantasy sports operators FanDuel Group and DraftKings Incorporated could reportedly be in trouble after the Internal Revenue Service (IRS) ruled that such firms are to be required to pay federal excise tax on their entry fees.

According to a Friday report from the Bloomberg news service, the decision was revealed via an internal memo from the federal authority and could result in the two daily fantasy sports behemoths becoming liable for millions of dollars in unpaid taxes and late payment fees.

Significant sums:

Bloomberg reported that American daily fantasy sports firms charge entry fees that subsequently allow punters to compete for cash prizes based on the performance of athletes in a virtua…