Solution: A specialized handler for crypto gambling activity: (1) Platform-aware import — recognizes Polymarket, on-chain casinos, and crypto sportsbook activity and classifies each correctly; (2) Dual-treatment engine — separately handles the crypto disposition (property gain/loss when you convert to bet) and the gambling outcome (winnings/losses under gambling rules), which mainstream tools conflate; (3) Prediction-market property treatment — applies the emerging guidance that prediction-market positions are taxed as property; (4) Gambling loss documentation — organizes the records needed to claim gambling losses against winnings; (5) Offshore-platform handler — reconstructs data from offshore sportsbooks that issue no tax forms; (6) Reconciliation to 1099-DA where the on-ramp/off-ramp exchange reported proceeds. ICP: Crypto users aged 21–45 who gamble through crypto rails — Polymarket prediction markets, offshore sportsbooks that take crypto, and on-chain casinos. They face a uniquely confusing tax situation: the crypto used to bet is property (so converting it is a taxable disposition), the gambling winnings have their own tax treatment, and prediction markets may be taxed as property rather than gambling. Mainstream crypto tax tools treat their Polymarket and casino activity as mysterious dispositions and get it badly wrong.
The dual-treatment engine — correctly separating the crypto-property disposition from the gambling outcome — is the unique technical insight that mainstream tools get wrong. The platform-aware import for Polymarket and crypto casinos handles activity that breaks generic tools. The offshore-sportsbook reconstruction serves users who receive no tax forms at all.
“Similar to how specialized tools emerged for DraftKings/FanDuel sports-betting taxes when daily fantasy and legalized sports betting exploded and generic tax software couldn't handle W-2Gs and session accounting. This is the same play for the crypto-gambling intersection.”