1311 ET [Dow Jones]--Prediction markets such as Kalshi could benefit from states raising taxes on sports betting, Benchmark analyst Mike Hickey says. DraftKings last week said it would add a 50-cent transaction fee to wagers in Illinois, after the state enacted a per-wager tax structure. The fee is likely to deter some bettors and motivate them to look for tax-free alternatives, he says. Prediction markets could be a favorite, Hickey says, because they are regulated by a federal entity and not subject to state taxes. Kalshi "could offer a compelling, tax-advantaged alternative that attracts both operators and value-driven players," he says. (katherine.hamilton@wsj.com)

(END) Dow Jones Newswires

June 16, 2025 13:21 ET (17:21 GMT)

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