Why prediction markets might take a bite out of New York's tax revenue

Business Insider | 02-10-2026 11:41am |

Mobile sports betting has become New York's second-largest source of gambling revenue, generating around $328 million in tax receipts in the first quarter of 2026. However, the rise of prediction markets like Polymarket and Kalshi, which are taxed at a lower rate, could reduce state revenue. This potential shift raises concerns about problem gambling and financial strain on the state.

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