Coinbase says Trump’s Big Beautiful Bill could push gamblers into arms of prediction markets
Coinbase suggests new tax rules from Trump's bill may drive gamblers toward prediction markets for tax advantages.Summary
Coinbase's 2026 outlook report suggests that a provision in the One Big Beautiful Bill Act, signed by President Trump, will limit the deduction for gambling losses against winnings starting in 2026. This change could lead taxpayers to face taxes on "phantom" income, even if they have an overall net loss. Consequently, Coinbase posits that prediction markets, which use financial contracts similar to derivatives, could become a more tax-advantageous alternative to traditional sportsbooks and casinos. This advocacy aligns with Coinbase's recent partnership to offer prediction markets to its customers via Kalshi. Furthermore, Coinbase is actively challenging state regulators by suing Michigan, Illinois, and Connecticut, arguing that prediction markets fall under the exclusive jurisdiction of the CFTC, not state gaming authorities.
(Source：The Block)