Trump's Ban Offers Opportunities to Gamblers with Prediction Markets

Coinbase stated that there will be important changes regarding how gamblers can deduct their losses from their winnings under the One Big Beautiful Bill Act, which will come into effect in 2026. This new tax rule will limit the deduction of losses from winnings.

Moreover, Coinbase suggested that prediction markets may offer more favorable tax treatment due to their structure being similar to financial contracts. The fact that prediction markets resemble derivative products is another factor that makes them attractive to gamblers.

More broadly, Coinbase predicts that prediction markets will become an essential part of the crypto infrastructure, despite the existing fragmentation and regulatory uncertainty.