WagerMintsNovig Prediction Market Taxes (2026)
Novig is a CFTC-regulated sports exchange, so its trades are event contracts rather than sportsbook bets, and Novig hasn't published how it reports them, so keep your own trade list and check what arrives after year end.
Checked October 26, 2026 against Novig’s own help pages.
Novig at a glance
- At tax time
- Sports exchange, CFTC-designated since June 2026.
- Exchange
- CFTC-regulated
- 60/40 method
- Can be argued
- States acting against it
- 4 states
Tax forms
What does Novig send at tax time?
- We couldn't find Novig guidance on which form covers trading results. Check your account's tax documents in January and February.
- Promotional credits you receive can be income in their own right. Keep them separate from your trading profit.
Who runs it
Who runs Novig's markets?
Novig's exchange, Ludlow Exchange, LLC, became a CFTC-designated contract market on June 16, 2026, and Novig launched nationwide on August 4, 2026.
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 Novig 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 Novig trade history?
Your Novig account statements and trade history. Keep it with your return: with no form showing your trading profit, it's your record if the IRS asks.
By state
Where are states acting against Novig?
Orders issued, cases running
Novig's operator sued the attorney general in federal court in August 2026.
Novig's parent Ludlow Exchange is suing the same officials in St. Louis federal court.
Novig's operator, Ludlow Exchange, sued the attorney general in federal court on August 4, 2026.
Every other state, with its tax rules: taxes and legal status by state.
Ask your AI
Ask your AI about your Novig 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
1,820 characters
I trade prediction markets on Novig. I'm working on my US federal taxes for 2026. From WagerMints, checked November 3, 2026: - We couldn't find Novig guidance on which form covers trading results. Check your account's tax documents in January and February. - Promotional credits you receive can be income in their own right. Keep them separate from your trading profit. - 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/novig - 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 Novig
- Does Novig send a 1099 for prediction markets?
- We couldn't find Novig guidance on which form covers trading results. Check your account's tax documents in January and February.
- How are Novig prediction market trades taxed?
- Novig is a CFTC-regulated sports exchange, so its trades are event contracts rather than sportsbook bets, and Novig hasn't published how it reports them, so keep your own trade list and check what arrives after year end. Novig's exchange, Ludlow Exchange, LLC, became a CFTC-designated contract market on June 16, 2026, and Novig launched nationwide on August 4, 2026.
- Can I use the 60/40 rule for Novig 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), DraftKings Predictions, FanDuel Predicts, PredictIt. All platforms side by side.
See your own year four ways
Type your closed positions from your Novig statement into WagerMints and see your year under all four methods, side by side. Free, no account.
Run your report