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IRS Uncertainty Clouds Taxation of Prediction Market Winnings

4/8/2026

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Summary

Story summary

The lack of IRS guidelines has left U.S. tax experts uncertain how to tax winnings from prediction markets such as Polymarket and Kalshi.
Patrick Camuso, an accountant, notes the ambiguity as CFTC Chairman Michael Selig calls for clearer regulations.
The ambiguity complicates tax filing, particularly for users accessing offshore platforms via VPNs that do not provide tax documents.

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Story summary

The lack of IRS guidelines has left U.S. tax experts uncertain how to tax winnings from prediction markets such as Polymarket and Kalshi.
Patrick Camuso, an accountant, notes the ambiguity as CFTC Chairman Michael Selig calls for clearer regulations.
The ambiguity complicates tax filing, particularly for users accessing offshore platforms via VPNs that do not provide tax documents.