The Shadow of Tax Uncertainty: Why New York's Lawsuit Against Kalshi Matters New York State's lawsuit against Kalshi, a prediction market provider, has sent shockwaves through the industry.
At its core is a tax issue that has driven this development: the disparity in tax rates between sportsbooks and prediction markets.
Sportsbooks like FanDuel are subject to a 51% tax rate on their net gaming revenue, while Kalshi pays corporate income taxes at a significantly lower rate of 7. 25%.