News Summary

• New York accounts for a third of all state tax collections on sports betting revenues.
• Mobile sports betting brought in around $328 million in tax receipts in the first quarter of 2026.
• Prediction markets like Polymarket and Kalshi have begun offering sports gamblers a new way to play — and they are taxed at a lower federal level.
• If 1% of sportsbook activity in New York moved to prediction markets, it could result in a $13 million revenue hit, according to an analysis from the Tax Policy Center.