Coinbase Pushes Prediction Markets Deeper Onchain as Clearing Company Deal Signals Breakout Expansion

first published 2025-12-22T13:59:31Z

Coinbase Institutional warns a provision in the One Big Beautiful Bill Act (effective 2026) will restrict deducting gambling losses against winnings, effectively taxing gamblers on unnetted wins. The report argues blockchain-based prediction markets — using event-based, derivatives-like contracts — could become a more tax-advantageous option than traditional sportsbooks and casinos. Coinbase also notes rapid growth in on‑chain prediction‑market activity, expects aggregators to emerge to consolidate odds and liquidity, and flags regulatory uncertainty as a major risk to sector maturation.

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The summary states the bill provision will limit deduction of gambling losses, creating a tax disadvantage for traditional gambling; Coinbase identifies on‑chain prediction markets as potentially more tax‑advantageous and cites rapid on‑chain growth and expected aggregators, while noting regulatory uncertainty remains a key risk.

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