World Cup Bets on Prediction Markets May Get Tax Edge Over Gambling
Bloomberg 2026-07-12 12:00:00
Context: The tax treatment of World Cup bets placed through prediction markets versus sportsbooks differs in the US, potentially giving prediction market users a tax advantage. This disparity arises from tax breaks originally intended for investments. The difference in tax burden may influence how Americans choose to place their World Cup bets.
Key Facts
- The tax breaks in question were originally aimed at investments, and are now being applied to prediction markets, potentially giving users of these platforms a tax edge over those using sportsbooks.
- Americans using prediction markets to bet on the World Cup may face a lighter tax burden than their peers who wager through sportsbooks.
- The tax treatment of World Cup bets differs between prediction markets and sportsbooks due to the application of investment tax breaks to prediction markets.