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.
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.
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