Tax Law Center urges wagering tax treatment for US sports prediction contracts
By SectorWire desk · · Updated
Summary
The report said 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.
Why it matters
Prediction market operators could face the gambling tax treatment applied to conventional sportsbooks if authorities adopt the analysis’s interpretation.