Sports event contracts on a CFTC-registered exchange, funded in dollars. No Texas state tax, and no IRS guidance yet on how these contracts are classified.
Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.
Short version: OG, Crypto.com's prediction-market app (trading through Crypto.com Derivatives North America, a CFTC-registered exchange), is funded and settled in dollars. Profits are federally taxable; Texas has no state income tax. How event contracts are classified hasn't been settled by the IRS, so check the tax documents OG provides in the app at year-end and keep your own trade records.
TL;DR:
🏛️ Federal income tax only — no Texas state tax
❓ No IRS guidance yet on how event contracts are classified
📄 Check the app for year-end tax documents; report profits even without a form
🗂️ Keep your own trade history
What's actually settled (September 2026)
Profits from prediction markets such as Kalshi and Polymarket US are taxable, but the IRS has not yet issued guidance on how event contracts should be classified. Depending on the facts, tax professionals have argued they could be treated as gambling income, as ordinary income or capital gains, or, more aggressively, as Section 1256 contracts with 60/40 long/short-term treatment; none of these positions has been confirmed by the IRS. The classification matters: from 2026, gambling losses are deductible only up to 90% of losses. Platforms generally do not issue a single 1099 covering your trading profits. Kalshi, for example, issues 1099s for interest, rewards and crypto transfers and provides a profit-and-loss statement for your trades, so keep your own records. This is general information, not tax advice; consult a qualified tax professional.
Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.
Last checked October 21, 2026
Do I owe Texas state tax?
No. Texas has no personal state income tax. Your OG profits are a federal question only.
What OG sends you
OG doesn't publish a list of the tax forms it issues for event-contract trading, so we don't assume one. Look for a tax or statements section in the app early in the year, download what's there, and keep a record of your deposits, trades and withdrawals. If you receive no form, your profits are still reportable.
How you report it depends on the classification
Gambling-income treatment, ordinary-income or capital-gains treatment and Section 1256 treatment each go on different parts of the return and handle losses differently (and from 2026 gambling losses are deductible only up to 90% of losses). Because the IRS hasn't chosen, decide with a tax professional rather than from a one-size-fits-all checklist.
This is general information, not tax advice. Every situation is different — consult a licensed CPA for filing.
Frequently asked questions
Do I owe Texas state tax on OG by Crypto.com winnings?
No. Texas has no state income tax and no state gambling tax. You owe federal income tax only.
Does Crypto.com send a 1099 for sports contracts?
OG doesn't publish which tax forms it issues for event-contract trading, so don't count on one. Check the app for year-end statements, keep your own trade history, and report your profits even if you receive no form.
How do I report OG by Crypto.com profits on my 1040?
Where it goes on your return depends on how event contracts are classified, which the IRS hasn't settled (gambling income, ordinary income or capital gains, or Section 1256). Gather your OG statements and trade history and decide with a tax professional.
Are Crypto.com sports profits ordinary income or capital gains?
Not settled. The IRS has issued no guidance on event contracts; professionals argue for gambling-income, ordinary-income/capital-gains or Section 1256 treatment. From 2026, if gambling treatment applies, losses are deductible only up to 90% of losses. Confirm with a tax professional.
Can I deduct losses?
Losses within the same account and tax year can offset gains. Deductibility beyond that depends on your overall situation — check with a licensed CPA before filing.
Certain limitations apply. The offer is available to new users only, subject to the terms and conditions at kalshi.com/tc/500. 18+ only. Restrictions and eligibility requirements apply. Event contract trading involves significant risk and is not appropriate for everyone. Please carefully consider if it is appropriate for you in light of your personal financial circumstances. Kalshi products are not available in all jurisdictions. See kalshi.com/regulatory for more information.
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