IRS yet to issue prediction market tax guidance for 2026
Regulation · SectorWire deskSource published
Summary
The US Internal Revenue Service has not issued guidance on how prediction market winnings and losses should be taxed in 2026. Tax experts say outcomes could fall under gambling income, capital gains or Section 1256 contract treatment, while the CFTC classifies event contracts as swaps rather than gambling.
Why it matters
Absent IRS guidance, prediction market winnings could fall under gambling income, capital gains or Section 1256 treatment.
Cite as: SectorWire, “IRS yet to issue prediction market tax guidance for 2026”, 27 July 2026, https://sectorwire.news/item/irs-yet-to-issue-prediction-market-tax-guidance-for-2026/