New Jersey lawmakers proposed a 9% tax on prediction-market companies’ gross income in bill S4447. The amended bill passed the Senate Budget and Appropriations Committee by a 9-4 vote; the report says it recognises the CFTC’s regulatory role and drops an earlier licensing proposal.
If enacted, the proposal would impose a state tax on prediction-market companies operating in New Jersey.
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It was reported that Nevada congressmen introduced a bipartisan proposal against sports-based prediction markets. The proposed Prediction Markets are Gambling Act would prohibit exchanges from listing sports and casino-style contracts.
North Carolina's $34bn budget, signed by Governor Josh Stein in July, includes a 6% tax on prediction market operators' net trading fee revenue, citing WFAE. The tax takes effect in January and is expected to raise about $1m in the 2026-27 fiscal year. The measure adds to debate over election-related contracts on platforms such as Kalshi and Polymarket.
According to, citing WFAE, North Carolina's new spending plan imposes a 6% levy on the net trading fee revenue of prediction market operators. The measure takes effect in January.
It was reported that the Tax Law Center published an analysis on 1 October arguing that US sports prediction contracts qualify as wagers for federal taxation. Its interpretation would bring these contracts within gambling provisions covering excise taxes, winnings and loss deductions. The analysis calls for IRS clarification to reduce uncertainty.
An analysis from the Tax Law Center, dated Oct. 1, examines whether contracts tied to sporting events on venues like Kalshi belong within the federal rules that govern gambling. The center's position is that such contracts amount to wagers for federal tax purposes.
Illinois Representative Travis Weaver is seeking to repeal the state's recently introduced sports prediction market tax. The proposal would remove a 1.75%-to-3.5% transaction tax that Kalshi and the CFTC have challenged.
A second-instance tax court in Italy upheld tax assessments against a company and its two partners over three computers used by customers to access online betting sites. The court confirmed the 2016 assessments after inspectors distinguished the three betting terminals from other internet computers. The judges found the inspection went beyond noting internet access and that one taxpayer acknowledged the terminals were provided for gambling.
A second-instance tax court in Italy upheld income tax assessments against a company and its two partners over three computers that customers used to access online betting sites. The court rejected the appeal of the two taxpayers and confirmed the assessments for 2016, according to the report.