Robinhood, Kalshi and Crypto.com seek Supreme Court ruling on prediction market wagering tax
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What happened
Robinhood (Nevada, Ninth Circuit loss, petition filed 10 September), Crypto.com's derivatives arm (Nevada, 11 September) and New Jersey (petition against Kalshi's Third Circuit win, 2 September) have all reached the Supreme Court, with responses due 7 December. The core dispute is whether sports event contracts are wagers under the federal excise tax rules (sections 4401 and 4421), and the Nevada case turns on state gambling law. Robinhood reported $173m in event contracts revenue last quarter and says it has not collected or remitted federal excise tax. An NYU Tax Law Center paper of 5 October concluded such contracts are probably taxable. Robinhood warned an adverse ruling could make the product uneconomical. Substantive opinions typically arrive in December or January.
For experienced traders · Written by AI from 1 source · Wrong?
What to do
- Check whether any Supreme Court ruling on the tax question has been published, as opinions typically arrive in December or January.
- Note that Robinhood says taxes on event contracts are the customer's sole responsibility.
Written by AI from the sources, checked against them
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