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  • stlcardinals84

    Leading RG Analyst

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC Finalist

    FanThrowDown issuing 1099’s based on gross winnings.

    While most sites use “net winnings” or “net withdrawals” for their 1099 reporting, FanThrowDown has decided to use the brilliant method of “gross winnings” for their reporting.

    That means if you deposited $1,000 there, won $500 worth of contests, and lost $1,500 worth to go broke, they will still be sending you a 1099 form for $500. To me, this is the worst method of reporting DFS results and will cause a major hassle for people who played on FanThrowDown and also other sites.

    If you are going to use the winnings method instead of the withdrawal method, at least have the decency to net it out first for the user. That’s just common sense.

    As a CPA with a vested interest in this, it’s yet another mistake from a site that is quickly falling behind. Good luck reporting this on your tax returns. It’s a huge mistake and frankly is enough for me to stop 100% of my action there.

  • RotoLynch

    2013 DSFC Finalist

    @JDub07 said…

    What a POS.

    I noticed that when I made a deposit before that it went to Jonathan Licata.

    Are you sure that is same person? Could be multiple Jonathan Licata’s but if it is what a POS. I wouldn’t play on a child predator’s site regardless of this tax issue.

    Both pages show the address as Lake Luzerne, New York. I’d say its the same guy.

    All this is going to blow up and place a huge black cloud over DFS.

  • Mike5754

    2013 PFBC Finalist

    @billsfan777 said…

    holy crap

    What a total donk….. didn’t even pay the $12 for private whois data.

  • BobFTD

    FanThrowDown Rep

    Message from MGT:

    We are sorry that this issue has escalated, but we appreciate your feedback.

    MGT’s CFO has engaged the most senior tax partner of our public audit firm. The research has been ongoing to ensure the proper treatment of gross versus net.

    The preliminary findings have been unfair to our players, however, when it pertains to the IRS, fair does not matter. We assure you that we will do what is correct. We will have the final answer by tomorrow morning.

    In the meantime, we know that passion fuels our business and we respect this conversation.

    If you have any specific questions regarding this policy, we encourage you to contact the CFO of MGT, Robert Traversa.
    RTraversa@mgtci.com

  • sethayates

    @EmpireMaker2 said…

    Also seems like the owner of fanthrowdown is a registered sex offender. Payments to the site go to JONATHAN LICATA not Mongero. He changed his last name to his mother maiden name presumably after this happened. Let me know if you need anymore evidence.

    http://whois.polodomains.com/domain/K65jol1EQ0WwV8latCJuBg.._info.html

    http://offender.fdle.state.fl.us/offender/flyer.do?personId=69892

  • stlcardinals84

    Leading RG Analyst

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC Finalist

    @BobFTD said…

    Message from MGT:

    We are sorry that this issue has escalated, but we appreciate your feedback.

    MGT’s CFO has engaged the most senior tax partner of our public audit firm. The research has been ongoing to ensure the proper treatment of gross versus net.

    The preliminary findings have been unfair to our players, however, when it pertains to the IRS, fair does not matter. We assure you that we will do what is correct. We will have the final answer by tomorrow morning.

    In the meantime, we know that passion fuels our business and we respect this conversation.

    If you have any specific questions regarding this policy, we encourage you to contact the CFO of MGT, Robert Traversa.
    RTraversa@mgtci.com

    You know what else isn’t fair? Retroactively changing your terms of service after telling customers specifically what your policy was.

    It’s not like the other sites are blatantly lying. They obviously got advice too, and they are at least on a similar path to each other.

    This is like bizarro-world.

    I can’t wait for one of their chat admins or somebody like Brit to get the stones to say screw it and throw the company under the bus. What’s there to lose at this point? FTD is as good as dead as a respected DFS site.

  • mahuz

    I feel disgusted for ever giving that site a $, I can’t even think about the stuff that pedophile was doing with that money. No cure for a perverted mind. I feel sick.

  • miggytoddbest

    • 2014 FanDuel WFBC Finalist

    @EmpireMaker2 said…

    I’m trying to think of the possible reasoning for this change and I think it most likely some type of scam going on here and they need to defer taxes for this year, becuase they are not liquid for whatever reason. Nothing else really makes sense. Wouldn’t surprise me if they dipped into the players escrow account to cover the overlay from the 500k.

    One reason, may be a reach but again it is the reason racetracks just send you gross and leave you figure out money in .

    Is it possible they simply do not keep track of money coming in on an individual player basis but solely on the deposits made for that day.

    Really what do they if Susie deposited $200 and Sara Jay deposited $700.
    To them its’ $900.

  • EmpireMaker2

    @BobFTD said…

    Message from MGT:

    We are sorry that this issue has escalated, but we appreciate your feedback.

    MGT’s CFO has engaged the most senior tax partner of our public audit firm. The research has been ongoing to ensure the proper treatment of gross versus net.

    The preliminary findings have been unfair to our players, however, when it pertains to the IRS, fair does not matter. We assure you that we will do what is correct. We will have the final answer by tomorrow morning.

    In the meantime, we know that passion fuels our business and we respect this conversation.

    Nah I’d rather ruin Robert Ladd’s and Johnathon “Licata’s” life and everyone who has a piece of MGT and FTD. I will be calling the IRS and SEC tomorrow and explain this to them. I don’t deal well with people who have tried to scam me, my friends, or innocent stockholders who lost money to insiders.

  • mahuz

    Brit Divine, Crazy Gabey and everyone else, get your resumes ready, it’s not looking good. And tell your pedo boss he is scum.

  • Ceodore

    sounds like ftd is telling you to…..

  • draftcheat

    • x3

      2016 DraftKings FFWC Finalist

    • x5

      2017 DraftKings FBWC Finalist

    EM2 winning this thread.

  • miggytoddbest

    • 2014 FanDuel WFBC Finalist

    @valterlaw said…

    That’s true, Gabey. But if you won $500, they wouldn’t submit it. Different casinos do it differently, but it’s generally reported if a)over $600 and b)300x the initial wager.

    Pretty it is 600X original wager, as that was always something that determined how a wager may be made at the window.

  • miggytoddbest

    • 2014 FanDuel WFBC Finalist

    @davefulche said…

    It could be worse FTD DFSers you could be taxed like a horse player spend 350 on a pick4 ticket thAt hits for 600 and get taxed for 600. In all seriousness the biggest problem FTD is gonna cause is to players getting audited.

    Sorry to only be the horse chimer in on’er, That is why when calling out your ticket, you don’t call it out certain ways.

    This way totally bad. Give me a $5 pick 4 456W 13W 6W 245

    You say give me $1 pick 4 456W 13W 6W 245

    You ask for it a total of 5X on 5 different tickets.

    So if it hits and pays $200 on a $1 wager, no issue, cash each $200 ticket.

    If it hits and pays $200 on a $5 wager, that one ticket will be $1000 and you will have to sign and get that form back at the end of the year.

    Makes sense? If not and you play horses let me know if you care

  • FBO

    thats why i stick to fanduel

  • nigeleccles

    FanDuel CEO

    Just to be clear FanDuel uses cumulative net winnings as the method for calculating the number that goes on the 1099. So that is winnings minus all entry fees.

    We have used that method for 4 years and follows the advice of our tax advisors. I know of at least one other major site that is moving to that method (from the net withdrawal method of calculation) and had thought it was becoming the industry standard.

    I sincerely hope FTD don’t switch to gross winnings as I think that would be very bad for both players and the industry.

  • DillingerFour

    FD Rep - DFBMeeMee Champ (x2)

    • Blogger of the Month

    Sounds like Bob is going to be busy for awhile. Will someone make me my avatar?

  • whits23

    2010 FFFC Finalist, 2010 DFBC Finalist, 2011 FFFC Finalist, 2014 DSBC Finalist

    • x2

      2010 FanDuel WFFC Finalist

    • 2011 FanDuel WFBC Finalist

    NIgel does this sound similar i got this from another site. as you did not mention the FDP or bonuses but that could be in the entry fee part

    (Total Prizes Won – Total Entry Fees) + Total Converted Deposit Bonuses.
  • jecarl2

    Given the info that has been posted about the owner and the 1099 mess today, I really don’t think it matters what FTD does going forward. I don’t think they survive this.

  • mrathburn

    @jmbwngfn said…

    And I thought Daily Joust was poorly run……..

    hey now! BANNED FROM CHAT :)

  • dan72

    @jecarl2 said…

    Given the info that has been posted about the owner and the 1099 mess today, I really don’t think it matters what FTD does going forward. I don’t think they survive this.

    Look at MGTs most recent 10 Q. First 9 months of 2013. $194k in Revenue and over 7 million in expenses with only 5 million left in cash. Wow. Then you see the salaries of their top 2. This company is going to 0 and the executives don’t care as they are paying themselves a fortune.

  • blaze1

    @nigeleccles said…

    Just to be clear FanDuel uses cumulative net winnings as the method for calculating the number that goes on the 1099. So that is winnings minus all entry fees.

    We have used that method for 4 years and follows the advice of our tax advisors. I know of at least one other major site that is moving to that method (from the net withdrawal method of calculation) and had thought it was becoming the industry standard.

    I sincerely hope FTD don’t switch to gross winnings as I think that would be very bad for both players and the industry.

    LOL Nigel can’t say it, say DK Nigel!

    Even this method is questionable, as it includes actual account balance. If I am taxed for 2013 (including year end balance), keep building a balance for 2014, part of what I was taxed on in 2013 is included 2014 tax liability.

    Makes sense from a business prospective to get the player balance off your books, but the money is still in your account, not mine. Of course your tax “advisors” would advise that.

  • jenbenners

    maybe the real problem is these “tax advisors” that tip the scale toward corporate greed and against the common man in every facet of the marketplace, not just dfs.

  • nigeleccles

    FanDuel CEO

    Actually it wasn’t DraftKings. I think they do use cumulative net winnings though. EDIT: Jason – correct me if I’m wrong.

    I don’t quite understand your comment about it getting player balance off our books. We don’t pay the tax to the IRS, we just file the report and it is between the player and the IRS. The method of calculation has absolutely no benefit to us from a business perspective.

  • youngkaiser740

    2013 PFBC Finalist, 2013 DK MS Classic (Runner Up)

    • 2013 StarStreet MLB Playboy Mansion Finalist

    @jenbenners said…

    maybe the real problem is these “tax advisors” that tip the scale toward corporate greed and against the common man in every facet of the marketplace, not just dfs.

    u

  • poonwhipped1

    @blaze1 said…

    LOL Nigel can’t say it, say DK Nigel!

    Even this method is questionable, as it includes actual account balance. If I am taxed for 2013 (including year end balance), keep building a balance for 2014, part of what I was taxed on in 2013 is included 2014 tax liability.

    Makes sense from a business prospective to get the player balance off your books, but the money is still in your account, not mine. Of course your tax “advisors” would advise that.

    IF the sites cared about this industry and their players they would come TOGETHER on this one issue and have it be UNIFORM. Just this one thing needs to be the same on all sites.

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