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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.

  • stlcardinals84

    Leading RG Analyst

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC 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.

    As a proud tax advisor, I absolutely resent that comment. How absurd. The method of 1099 reporting has no bearing on the net results of the site and neither the accounting firm nor the site would have a horse in the race there.

    90% of CPA’s would tell you that FanDuel’s method (net winnings) is most accurate. You’re taxed on what is still in your account based on the doctrine of constructive receipt.

    About 7-8% would probably side with the net withdrawals method (most friendly to the player)

    The other 2-3% would fall where FTD is attempting to go. I can’t believe this whole MGT mess.

  • dan72

    Regardless of their 1099 methodology. I am fairly certain FTD was a scam to take shareholder money and put it in the founders pockets. Now that the founders’ past has been revealed, you have to be even more certain of this.

  • BobFTD

    FanThrowDown Rep

    Just spoke to MGT’s CFO. This is his official stance as of now:

    We will be reporting NET winnings. Our auditors gave us incorrect guidance.

    A fuller explanation and an apology will be posted in the morning.

  • mahuz

    @BobFTD said…

    Just spoke to MGT’s CFO. This is his official stance as of now:

    We will be reporting NET winnings. Our auditors gave us incorrect guidance.

    A fuller explanation and an apology will be posted in the morning.

    #amateurhour

  • dan72

    @dan72 said…

    Regardless of their 1099 methodology. I am fairly certain FTD was a scam to take shareholder money and put it in the founders pockets. Now that the founders’ past has been revealed, you have to be even more certain of this.

    This whole 1099 methodology is a cover-up. And they can tell shareholders that is what happened. All of their players left and we are bankrupt. When the founders were paying themselves a small fortune and other extremely high operating expenses. Like a wrote a while back. This is a real life example of The Producers.

  • Bulbus2

    @BobFTD said…

    Just spoke to MGT’s CFO. This is his official stance as of now:

    We will be reporting NET winnings. Our auditors gave us incorrect guidance.

    A fuller explanation and an apology will be posted in the morning.

    Good news just a shame how we had to get to it.

  • TwoGun

    • 174

      RG Overall Ranking

    • x3

      $1M Prize Winner

    • x5

      2019 DraftKings FFWC Finalist

    @dan72 said…

    Regardless of their 1099 methodology. I am fairly certain FTD was a scam to take shareholder money and put it in the founders pockets. Now that the founders’ past has been revealed, you have to be even more certain of this.

    In regards to this, all I’ve seen so far from FTD is them putting money in my pocket as a player :).

    And woohoo for the situation being resolved and 1099’s being net winnings and this being over with…

  • youngkaiser740

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

    • 2013 StarStreet MLB Playboy Mansion Finalist

    I hope everybody leaves there site. so the question I have from my withdraws and deposits I come out 245 in negative but i have like 1200 in winnings so i have to get a 1099 for the 1200?

  • easternmh

    • x3

      Blogger of the Month

    @stlcardinals84 said…

    As a proud tax advisor, I absolutely resent that comment. How absurd.

    90% of CPA’s would tell you that FanDuel’s method (net winnings) is most accurate. You’re taxed on what is still in your account based on the doctrine of constructive receipt.

    About 7-8% would probably side with the net withdrawals method (most friendly to the player)

    The other 2-3% would fall where FTD is attempting to go. I can’t believe this whole MGT mess.

    They’ll be out of business by like tomorrow doing that; can’t believe their auditor recommended this after what’s in their TOS….. You’d have thought they’d have had their auditor review their previous TOS but apparently not

  • jenbenners

    @stlcardinals84 said…

    As a proud tax advisor, I absolutely resent that comment. How absurd. The method of 1099 reporting has no bearing on the net results of the site and neither the accounting firm nor the site would have a horse in the race there.

    90% of CPA’s would tell you that FanDuel’s method (net winnings) is most accurate. You’re taxed on what is still in your account based on the doctrine of constructive receipt.

    About 7-8% would probably side with the net withdrawals method (most friendly to the player)

    The other 2-3% would fall where FTD is attempting to go. I can’t believe this whole MGT mess.

    i should have underline the word “these” as you know i wasn’t talking about you.

  • easternmh

    • x3

      Blogger of the Month

    @youngkaiser740 said…

    I hope everybody leaves there site. so the question I have from my withdraws and deposits I come out 245 in negative but i have like 1200 in winnings so i have to get a 1099 for the 1200?

    Yes

  • SteinerLJ15

    Draftstreet is the one switching or thinking of switching to net winnings. I contacted them before the first of the year and asked them to verify the way they did taxes. I was a little annoyed that they had and may still have that it was done on withdraws on their website and they would switch it without informing people.

    Definitely does not create the shit storm this does to somebody’s taxes but I still think that it wasn’t handled right. I did mention it in another post.

    Again not the same thing but just thought a few people would like to know.

  • kaetorade

    • 2013 DraftStreet DSBBC Finalist

    @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.

    The site Nigel is referring to is Draftstreet(they’ve confirmed it to me).

    Anyways, I think you’re a bit off in your example. You’re worried that you’d be taxed twice? On the balance in your account as of dec 31 and in 2014? I believe it’s safe to assume that since account balance is now factored in, the balance carried over will be treated as a deposit for 1099 purposes.

  • stlcardinals84

    Leading RG Analyst

    • 2018 DraftKings FBWC Finalist

    • 2018 DraftKings FBBWC Finalist

    @jenbenners said…

    i should have underline the word “these” as you know i wasn’t talking about you.

    Fair enough — all good. This thread has just been too much stress today.

  • dan72

    3Q 2013. Revenue of only 40K. An operating loss of almost 3 million. And only 5 million in cash.

    Do the math. They will be out of cash soon unless they can hose some more shareholders.
  • ldmariodl28

    • Blogger of the Month

    Between Condia-Gate, this and the idiot who tweeted Eric Bledsoe this week its been a bad week for DFS which just completed its 3 best weeks giving out $1MM each week. Just a shame.

  • baseballs

    @TwoGun said…

    In regards to this, all I’ve seen so far from FTD is them putting money in my pocket as a player :).

    And woohoo for the situation being resolved and 1099’s being net winnings and this being over with…

    Just spoke to MGT’s CFO. He said I actually won the 500k championship. Sorry TwoGun..

  • youngkaiser740

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

    • 2013 StarStreet MLB Playboy Mansion Finalist

    wow that’s fucking bs

  • adamo112

    Looks like the auditor referred them to a good commercial litigator who then said, “Hey, um, whatever happens with the IRS, maybe don’t commit wholesale corporate fraud.”

    What a relief that this is resolved. So far 2014 is the “year of DFS sites taking the golden goose and swinging it around by its neck.”

  • rotomonkey83

    As penance, FTD should be forced to play the Benny Hill theme on repeat on their main site.

  • onehitquit21

    @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

    THANKS. Regardless of what else happens with FTD today I’m done over there because of this regard. Fact he did it makes me wanna throw up but a girl and under 16…fuck outta here.

  • deactivated17417

    Thank god they are going to report net winnings but the fact that they even started down the gross winnings path is scary. Also, lets not forget they tried to retroactively change their Terms of Service. This is downright corrupt. They can’t undo that without a time machine.

    I have already warned my friends and social media acquaintances about fanthrowdown. I would hope the rest of you would do the same.

  • Fr33dom35

    @mrathburn said…

    hey now! BANNED FROM CHAT :)

    Nothing new. FTD is using the same accounting method that Daily Joust was! Same auditor? I remember fighting to get my withdrawal from DJ and pointing out that nobody else in the industry did it that way and that it was completely idiotic lol

  • jenbenners

    more info linking mongero/licata

    florida home info

    http://www.pbcgov.com/papa/Asps/PropertyDetail/PropertyDetail.aspx?parcel=38434421150930140

  • adamo112

    @TheCoz said…

    Thank god they are going to report net winnings but the fact that they even started down the gross winnings path is scary. Also, lets not forget they tried to retroactively change their Terms of Service. This is downright corrupt. They can’t undo that without a time machine.

    I have already warned my friends and social media acquaintances about fanthrowdown. I would hope the rest of you would do the same.

    Yup. That’s about the worst breach of trust you can have with your customers. I assume they are toast now.

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