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by superfrank 223 days ago
Federally, That's not even true anymore. In the BBB there was a tax code change that says you can only write off 90% of your losses from sports betting now.

If you win $95 on one bet and lose $100 on another, you owe taxes on $5 of that $95.
2 comments
iamacyborg 223 days ago
> In the BBB there was a tax code change that says you can only write off 90% of your losses from sports betting now.

If I understand correctly that’s no longer the case as “sports betting” prediction markets are now becoming a financial product.

https://www.bloomberg.com/opinion/newsletters/2025-07-10/do-...

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superfrank 222 days ago
We're kind of in the middle of that shift, but yeah, prediction markets are futures contracts and handled differently.

The main sportsbooks you see advertising on TV like Draft Kings, Fan Duel, etc are still the old sports betting model where you're betting against the house. That's still taxed as sports betting. Kalshi, Polymarket, and some smaller sports focused apps like NoVig and Sporttrade are prediction markets that allow sports predictions and those would allow a full write off.

That said, I've heard that most of the major sportsbooks like Draft Kings and Fan Duel are building out their own prediction market platforms, so I think it's only a matter of time until everyone is in that model. Even ignoring the tax implications, it's lower risk and more consistent revenue for the books since they can structure things so they make money on every trade (if they want).

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BobbyTables2 222 days ago
That seems wild since exchanging “bet” for “stock trade” results in a very different result…
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jakelazaroff 222 days ago
The difference is there's a clear societal benefit to stock market investment, whereas there's a clear societal detriment to sports gambling as it exists today.
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