2017 has become the year of taxing fantasy sports for both the operators of the games, and the players by state governments.
As state governments are looking to balance their budgets, they have looked to taxing fantasy sports. About two-thirds of the states have passed legislation so far, some taxing the players, some taxing the operators, and some taxing both.
If you operate a fantasy sports E-Commerce site you will need to keep up to date on this new development that affects your business. You will want to make sure your Internet lawyer and accountant keep you up to date on the requirements so that you do not miss registering (often with filing fees) and filing taxes in a required state.
Meanwhile, there are still about a dozen state that do not permit betting on fantasy sports at all, and maintain that this endeavor still falls under their anti-gambling laws.