Can you bet on Kalshi in South Dakota? Yes.

Taxes in South Dakota

South Dakota does not set how prediction-market winnings are taxed — your federal return does. The unsettled question is federal characterization (Section 1256 versus Schedule D versus gambling income), not state-by-state treatment, and it is the same unsettled question in every state on this site. TapeXray does not publish per-state tax guidance. Research, not advice.

• Do you pay taxes on prediction-market winnings?Yes — prediction-market profits are taxable in the US. What the IRS has and has not said about Kalshi, Polymarket US, and event-contract gains.
• Which 1099 forms does Kalshi actually send?Kalshi issues 1099-INT, 1099-MISC, and 1099-DA forms — but no 1099-B for event-contract trades. What each form covers and what you must report yourself.
• Section 1256 vs Schedule D for event contractsEvent-contract gains could be taxed three ways: 60/40 Section 1256, capital gains, or gambling income. What each means, and why nobody has settled on one.
• Polymarket US (QCX) taxes: what's differentPolymarket's US exchange is CFTC-regulated like Kalshi, so the tax questions are the same — but its history and tooling are months old.
• Export your Kalshi and Polymarket trade historyNeither venue sends a 1099-B, so your exported trade history is your tax record. Where the data lives and how often to pull it.
• Prediction-market tax record-keeping checklistA quarterly, ten-minute routine that makes April painless: exports, statements, promo terms, and the artifacts that survive an audit.