Ok so I logged into my Spotify Premium account on my Gear, found and downloaded my playlist, and can play it with out my phone connected to the wifi.
What I can't do is listen to my music completely offline not connected to wifi or phone just my blutooth headset.
In offline mode the songs that I downloaded from my playlist appear but when I select them nothing plays. But when I reconnect to the Wifi they play just fine.
I noticed in the setting under "Playback" there are two options "Stream on Wifi" and "Remote". I have to keep it on Wifi because when I choose remote it wants me to connect to my phone through blutooth.
I have tried twice to unload and reload the app and same with my downloaded playlist.