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Michael Gonzalez
Michael Gonzalez, Attorney
Category: Business Law
Satisfied Customers: 60
Experience:  Managing Member at Perez-Mena & Gonzalez, LLC
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I would like to know the legal restrictions id have, and

Customer Question

I would like to know the legal restrictions id have, and taxes id be responsible for while running entry fee, payout
Madden seasons (NFL video game). After paying an entry fee, users have the ability to customize their team through free agency, a draft and while making approved trades while using their skill to compete for a pay out spot. The super bowl winner gets the grand prize and a small trophy paid for from the entry fees. Super bowl loser gets the 2nd place prize and the rest of the post season teams get at least their fee back. there are few rules that could earn you a boot and cause you to forfeit your fee. such as quitting a game, being unreachable, being caught cheating, making an unapproved trade, etc...
Submitted: 7 months ago.
Category: Business Law
Expert:  Michael Gonzalez replied 7 months ago.

Hello and welcome to JustAnswer.

Since this activity that you described involves a game of skill it is not likely this would be deemed illegal gambling under Florida Statutes Chapter 849. See following link

http://myfloridalegal.com/ago.nsf/printview/DEF7C36F0D75C323852563D2007AA34C. It is an older opinion but instructive.

In any event, whether this activity is legal or (even) illegal, any gains will be considered income. You could presumably deduct any fees and other costs and remaining balance would be income that you would be obligated to report and pay income taxes on.

Expert:  Michael Gonzalez replied 7 months ago.

Hello again,

I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?

If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer – otherwise, I receive nothing for my efforts in your behalf.