Short version: OG by Crypto.com (trading on CDNA, a CFTC-regulated DCM) is a US-regulated exchange for sports event contracts. Profits are federally taxable as ordinary income. Texas has no state income tax. You should receive a 1099 for the tax year.
Do I owe Texas state tax?
No. Texas has no state income tax and no state gambling tax. You owe federal income tax only, same as any other capital-markets or event-contract income.
Does Crypto.com send a 1099?
Yes. Because CDNA is a CFTC-regulated DCM and sports contracts settle in USD, Crypto.com issues a 1099 to US users summarizing your net proceeds for the tax year. Check the app's Tax Center in January/February.
How to report on your 1040
- Download the 1099 from the Crypto.com app.
- Report net event-contract income on Schedule 1, line 8 (Other income).
- Add it to your total income on Form 1040.
- Keep the 1099 with your tax records.
Ordinary income vs capital gains
Short-dated sports event contracts that resolve in under a year are generally taxed as ordinary income. Longer-dated futures-style contracts may qualify for Section 1256 60/40 treatment — confirm your specific contract classification with a CPA before filing.
More: Fees explained · How to use OG by Crypto.com · Kalshi taxes (Texas)
CFTC-regulated. Fiat rails. Mobile-first sports contracts.
This is general information, not tax advice. Every situation is different — consult a licensed CPA for filing.