Rahm Emanuel Proposes 10% Tax on Betting and Prediction Apps

The potential Democratic presidential candidate says the revenue would fund key U.S. industries to compete with China.

Apr. 16, 2026 at 5:09pm

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A vibrant, abstract painting of a person's hand holding a smartphone, the image repeated in overlapping, fractured geometric shapes in shades of blue, orange, and yellow, conceptually representing the dynamic and fast-paced nature of online betting and prediction markets.Emanuel's proposed tax on online betting and prediction platforms aims to fund critical U.S. industries and counter China's technological investments.Chicago Today

Former Chicago Mayor and potential 2028 Democratic presidential candidate Rahm Emanuel has proposed a 10% federal transaction tax on all bets placed at licensed online sportsbooks and casino apps, as well as all contract purchases at prediction platforms. Emanuel estimates this could generate $30-50 billion in revenue, which he says would be used to support research and development in critical industries like AI, quantum computing, fusion energy, and national security technology.

Why it matters

Emanuel's proposal is aimed at helping the U.S. compete globally with China, which he says has benefited from the Trump administration's cuts to university research funding. The tax revenue would go towards shoring up American leadership in key emerging technologies.

The details

Under Emanuel's plan, the 10% tax would apply to all online sports betting, casino gambling, and prediction market transactions. He says this $400 billion industry is currently 'betting against America' and the tax would instead 'reward the entrepreneur' and innovation. Emanuel has also previously suggested banning federal employees from using prediction platforms due to potential conflicts of interest.

  • In 2025, the Trump administration cut $11 billion in funding from prestigious universities across the country.

The players

Rahm Emanuel

A former Chicago mayor, White House chief of staff, and ambassador to Japan who is considering a run for the 2028 Democratic presidential nomination.

President Donald Trump

The former U.S. president who cut $11 billion in funding from universities during his administration.

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What they’re saying

“Let's bet on America — not against it. I'm proposing a 10% fee on prediction markets and online gambling to fund an American Innovation Fund—investing in AI, quantum computing, fusion energy, life sciences, and national security tech.”

— Rahm Emanuel

“We're stagnant and worse than stagnant under President Trump. We're cutting the NIH [National Institutes of Health] and the National Science Foundation. To me, raise a 10% fee. It goes into this Innovation Fund. I'm tired of people betting against America. I want to bet on America. I want to not reward gambling. I want to actually reward the entrepreneur.”

— Rahm Emanuel

What’s next

Emanuel's proposal would require legislation to be adopted by the federal government. It remains unclear if operators would be taxed by their gross or net revenue, total betting volume, or individual transactions.

The takeaway

Emanuel's proposal to tax the booming online betting and prediction market industry aims to generate significant new revenue that could help the U.S. compete with China's investments in key emerging technologies. The plan reflects a broader push by the potential 2028 presidential candidate to define a more specific policy agenda for the Democratic party.