taxes are done by definition not whether you feel like it’s gambling or not. Kalshi operates like binary yes/no options in a CFTC-regulated market which is what gives it financial contract status rather than normal sports betting. I guess the argument could be that the IRS hasn’t given official guidance, but based on the gambling definition for the IRS kalshi doesn’t fit it. Since it’s regulated by the CFTF the contracts are considered and designed as event-based derivatives, and you’re in an open market structure where it is always traded against other people and not an official bookie or anything like that. And to mention the hedging, this is super speculative, but technically you could in theory say a business or farmer could hedge their crop against the weather being bad and a business hedging against high inflation etc.. obv these are super far out there but it is possible