IRS News & Prediction Market Coverage
Track the latest IRS news across prediction markets. Prediction News is following 5 active IRS stories across regulation, legal action, market moves, and platform developments, each clustered from original reporting and summarized for operators, traders, and regulators.
Latest News
NYU Tax Law Center urges IRS to tax prediction market sports contracts as gambling
TradingKalshi launches CFTC-approved gold and silver perpetuals, files for stock perpetual futures
OpinionOpinion: Trump family ties to prediction markets will draw IRS scrutiny
LegalIRS silence leaves prediction market traders guessing on tax bills
LegalTax advisory flags implications for event contract traders
Frequently Asked Questions
How are prediction market winnings taxed?
The IRS has not issued any guidance on how prediction market winnings and losses should be taxed.
Has the IRS clarified tax treatment for Kalshi or Polymarket?
No, the IRS remains silent on prediction market tax treatment with no timeline disclosed.
What tax reporting obligations do prediction market traders have?
Traders must file 2026 returns without knowing whether winnings qualify as ordinary income, capital gains, or gambling proceeds.
Are prediction market platforms shielded from IRS audits?
Senate Democrats are probing whether Kalshi and Polymarket qualify as affiliates protected under a Trump family Treasury settlement.
Does Kalshi argue its contracts receive special tax treatment?
Kalshi argues its contracts should qualify as regulated futures.