No. I did several hours on the phone and emails with the IRS about a 50/50 and Gaming Laws. As Long as (the 50 part) goes to a non-profit group, which a league is considered, it is NOT gambling. It is a Sports Gaming, but under the IRS and AZ ( my state) that money is not considered a gambling money.
Each state has different laws, but the IRS does not consider it to be a gambling issue. Yes, I saves all emails and have a letter from the IRS backing up , as well as AZ (my state) gaming laws just in case anyone wanted to pitch a fit about this subject.
Not sure where you got your info from, but it wasn't the IRS folks I talked to.
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az guy aka: R & L Bowlers Pro
rlbowlerspro@cox.net
www.rlbowlerspro.com