Kalshi Head of Corporate Development Sara Slane disputed industry claims which state prediction market operators fail to pay state taxes, believing the “current crusade against prediction markets is somewhat baffling.”
“I know this industry, its politics and its regulators extremely well. Which is why the current crusade against prediction markets is somewhat baffling,” Slane said.
“The latest example: Casinos: ‘Prediction markets don't pay state taxes.’ Prediction markets agree to pay state taxes. Casinos: ‘Prediction markets are making backroom deals to pay state taxes and the money is not being allocated appropriately.’ Paying taxes isn't shady. And companies don't decide where state tax revenue goes – legislators do.”
Slane cited a recent decision from Illinois lawmakers to amend the state’s betting laws to charge a 1.75% tax on the first five million sports event contracts traded on a respective prediction market, rising to 3.5% thereafter.
Kalshi filed a federal lawsuit against Illinois in an effort to prevent the state from enforcing new licensing requirements and taxes on sports-related event contracts, however, although Slane appears to view the potential tax introduction in a more positive light.
Slane continued: “Illinois was a great example. I don't hear the casino industry complaining about that process. A prediction market tax was passed in that state with thirty minutes notice.
“This raises a bigger question: if the casino industry's argument is really about protecting consumers and generating revenue for the states, why oppose efforts to address both? Similar to the past, my door is open to anyone… for serious talks on prediction markets, competition and sound policy.”
Slane directly mentioned the American Gaming Association (AGA), as well as President & CEO Bill Miller, in her remarks – having previously served as SVP of the AGA from January 2014 to July 2019.
On September 23, Global Gaming Insider analyzed Kalshi’s recent partnership with the Tunica-Biloxi Tribe of Louisiana, and whether the inaugural Tribal collaboration could swing the operator’s reputational pendulum.
Kalshi requested the CFTC allow the operator to provide margin trading on its platform on September 22, although such capabilities would not extend to sports, culture or ‘mention’ markets
