Yeah, the US has a bizarre tax system, and seriously puritan laws about gambling (including treating most non-regulated investment return as gambling). If one were serious about this topic, the obvious answer is to move someplace more reasonable (and then wait 10 years for the US to stop expecting you to pay taxes on non-US activities). At the very least, the goodness of prediction markets in general should be studied outside the US, and a US-centric post would be labeled as “limits of betting markets in the US”.
Yeah, the US has a bizarre tax system, and seriously puritan laws about gambling (including treating most non-regulated investment return as gambling). If one were serious about this topic, the obvious answer is to move someplace more reasonable (and then wait 10 years for the US to stop expecting you to pay taxes on non-US activities). At the very least, the goodness of prediction markets in general should be studied outside the US, and a US-centric post would be labeled as “limits of betting markets in the US”.