States Move on Plans to Tax Prediction Markets: States of Play

April 8, 2026, 6:32 PM UTC

States Move on Prediction Market Tax Plans

Lawmakers in many states are pushing to regulate and tax prediction markets as their legislative sessions draw to a close, Michael J. Bologna reports.

Kentucky passed legislation last week regulating prediction markets and imposing an excise tax on transaction fees. Similar bills are gaining momentum in Illinois, Iowa, and New Jersey, and at least nine additional states are considering action.

Lawmakers backing such measures argue the markets—which let players trade contracts based on the outcome of real-world events—amount to unlicensed and unregulated gambling. The proposals range from ...

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