WagerMintsDraftKings Predictions Taxes (2026)
DraftKings Predictions trades are event contracts on a CFTC-regulated exchange, taxed differently from DraftKings sportsbook bets, and DraftKings hasn't published how it reports them, so keep your own trade list and check your tax documents.
Checked October 26, 2026 against DraftKings Predictions’s own help pages.
DraftKings Predictions at a glance
- At tax time
- Not the sportsbook. Its own exchange, DKeX, since June 2026.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
Tax forms
What does DraftKings Predictions send at tax time?
- DraftKings hasn't published which form, if any, covers Predictions trades.
- Sportsbook and casino winnings on the same account are a different product. Those are gambling winnings and can come with a W-2G.
- Don't add your Predictions results to your sportsbook winnings or the other way round. They can go on different lines of your return.
Who runs it
Who runs DraftKings Predictions's markets?
DraftKings Predictions runs on DraftKings' own CFTC-regulated exchange, DKeX, launched in June 2026. Some contracts, such as parlays, were listed on Crypto.com's exchange first.
That matters for one of the four methods. Section 1256, the 60/40 split, can only be argued for contracts traded on a CFTC-designated exchange. These are, so the 60/40 method is on the table. No court or IRS ruling has settled whether it applies to event contracts. How the 60/40 rule works.
How to report
How do you report DraftKings Predictions trades?
| Method | Where it goes |
|---|---|
| Capital gains | Form 8949 and Schedule D. Box C or F under capital gains treatment. |
| Ordinary income | Schedule 1, line 8z, as one net figure |
| Gambling | Winnings on Schedule 1, line 8b; losses on Schedule A, only if you itemize |
| Section 1256 (60/40) | Form 6781, then Schedule D |
Step by step, including TurboTax: how to report prediction market trades. What each method costs: prediction market taxes, explained.
Trade history
Where is your DraftKings Predictions trade history?
The transaction history for Predictions in the DraftKings app, kept separate from sportsbook history. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
More on DraftKings Predictions: Sports betting taxes.
Ask your AI
Ask your AI about your DraftKings Predictions year
Answer a few questions and we write the prompt for ChatGPT, Claude, Perplexity or any AI. It carries the four tax methods, your state’s rule and links to the pages behind them, checked November 3, 2026. Or run your actual trades for exact figures, free.
Add rough numbers (optional)
The AI can then work the methods out for your year. Round figures are enough.
Your prompt
1,818 characters
I trade prediction markets on DraftKings Predictions. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - DraftKings hasn't published which form, if any, covers Predictions trades. - Sportsbook and casino winnings on the same account are a different product. Those are gambling winnings and can come with a W-2G. - The IRS has published no guidance on how event contracts are taxed. Four ways traders report this: 1. Capital gains: Form 8949 and Schedule D, short- or long-term by holding period. Net losses offset up to $3,000 of other income a year, and the rest carries forward. 2. Section 1256: Form 6781, 60% long-term and 40% short-term however long I held. Positions open on December 31 count as sold at that day's value. Disputed: Camuso and Mukherjee (Tax Notes Federal, June 2026) conclude it isn't available, White & Case argues for it, and the CFTC's October 2026 proposal to call event contracts swaps cuts against it, because Section 1256 excludes swaps. 3. Ordinary income: net result on Schedule 1, line 8z. 4. Gambling: winnings on Schedule 1, line 8b. Losses only on Schedule A if I itemize, only up to winnings, and only 90% of them from 2026. Read these pages: - https://wagermints.com/taxes/draftkings-predictions - https://wagermints.com/blog/how-to-report-kalshi-polymarket-taxes My question: How would my year come out under each of the four methods? How to answer: - Say which links you opened, and never describe one you didn't open. If one fails, use the facts above and say so. - Mark each point [linked source], [general tax rule] or [unsettled]. - Put the methods side by side in one table for my year, and state any number you assume. - Don't pick a method for me. End with questions for a CPA or enrolled agent, then anything you need from me.
WagerMints doesn’t see or store what you type here. The prompt goes to the AI you pick, under that company’s terms. Never add your Social Security number, API keys or wallet keys. AI answers can be wrong, so check them against the linked sources and a preparer.
Questions
Questions about DraftKings Predictions
- Does DraftKings Predictions send a 1099 for prediction markets?
- DraftKings hasn't published which form, if any, covers Predictions trades.
- How are DraftKings Predictions prediction market trades taxed?
- DraftKings Predictions trades are event contracts on a CFTC-regulated exchange, taxed differently from DraftKings sportsbook bets, and DraftKings hasn't published how it reports them, so keep your own trade list and check your tax documents. DraftKings Predictions runs on DraftKings' own CFTC-regulated exchange, DKeX, launched in June 2026. Some contracts, such as parlays, were listed on Crypto.com's exchange first.
- Can I use the 60/40 rule for DraftKings Predictions trades?
- It can be argued, because the contracts trade on a CFTC-designated exchange. No court or IRS ruling has settled whether Section 1256 applies to event contracts.
Other platforms: Kalshi, Polymarket, Robinhood, Coinbase, Crypto.com, Webull, Interactive Brokers (ForecastTrader), FanDuel Predicts, Novig, PredictIt. All platforms side by side.
See your own year four ways
Type your closed positions from your DraftKings Predictions statement into WagerMints and see your year under all four methods, side by side. Free, no account.
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