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.
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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