DoubleDown Settlement (online gaming)

[jwhuffman]

I received a check from the settlement of the DoubleDown online gaming. I have not received any tax forms. The letter that I received with the check states the following:
The Settlement Administrator cannot provice tax advice. You may want to consult your tax advisor regarding the tax treatment of this Settlement Payment if you have any tax-related questions.

Question: Do I have to report on my taxes and if so, how?

Thanks in Advance.

John Huffman

[Mike9241 · Accepted solution]

see this link for an opinion

https://www.bing.com/search?q=settlement+of+the+DoubleDown+online+gaming+taxable&toWww=1&redig=EA951... 

The $415 million settlement reached in the DoubleDown Interactive class action lawsuit is a significant development. Here are the key details:

• Nature of Settlement: DoubleDown Interactive, a game developer, agreed to pay $415 million to resolve claims that its casino mobile games violated Washington state’s gambling laws. The settlement benefits consumers who played games like DoubleDown Casino, DoubleDown Fort Knox, Dou...¹.

• Tax Implications: Settlement payments are generally taxable unless they fall under specific exceptions. In this case, the settlement amount received from DoubleDown Interactive may be considered taxable income. It’s advisable to consult with a tax professional or accountant to determine the exact tax treatment based on your individual circumstances.

[jl222]

Since the nature of the settlement is connected to online gaming , can you deduct gambling losses against it if you had gambling losses?

[PatriciaV]

The payment was from the settlement of a class action lawsuit. The income is taxable but is not related to your personal gambling activities so no gambling losses may be reported to offset the income.

@jl222