Coinbase Points to Prediction Markets Gaining Tax Advantages Over Gambling by 2026

Coinbase, in its outlook report released this week for 2026, pointed out that due to tax changes, prediction markets could become a more tax-favorable option compared to traditional sportsbooks and casinos. This shift is anticipated as a result of the provisions of the 'One Big Beautiful Bill Act' signed by President Trump in July, which will come into effect in 2026. The One Big Beautiful Bill Act, a comprehensive bill passed as a key pillar of President Trump's policy agenda, includes provisions that limit the extent to which gambling losses can be deducted from winnings. This could mean that taxpayers who only secure small winnings or who overall incur net losses...