Calling the Odds: State Tax Developments in Prediction Markets

This article was originally published for The Journal on State Taxation.

Prediction markets are exchange-style platforms where participants buy and sell contracts tied to the outcome of future events such as sports contests, elections, economic indicators, or other measurable contingencies. As trading activity grows and these products increasingly overlap with sports wagering, gaming, and federally regulated event-contract markets, states are beginning to address if and how the industry should be taxed. 

BDO’s Ilya Lipin, James Bowden, and Jonathan Bailey provide full details in this article for The Journal on State Taxation.