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posted Oct 11, 2023 3:41:41 AM

Class action suit against Company dealing with illegal gambling

DoubleDown Interactive agreed to a $415 million class action lawsuit settlement to resolve claims its casino mobile games violated Washington’s gambling laws.

 

Received a settlement check from above.... it was because of gambling laws in the state of Washington----for gambling as the company was illegacally charging to play the games

 

is this settlement amount taxable?

Joe B 

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Level 15
Oct 11, 2023 5:50:22 AM

The general rule regarding taxability of amounts received from settlement of lawsuits and other legal remedies is Internal Revenue Code (IRC) Section 61. This section states all income is taxable from whatever source derived, unless exempted by another section of the code such as an award which compensates you for personal physical injury.