If I was reporting them on my tax return I would probably treat them as Section 1256 contracts or perhaps capital assets (like stocks). I would not treat them as gambling winnings/losses. Another option I didin't mention in the previous post is to report net winnings as "Other Income" on Schedule 1 of Form 1040. Kalshi, which I believe is the largest predictions market platform is already fully regulated by the CFTC and are operating as a registered Designated Contract Market. I would guess Robinhood is too since they provide options trading. States want them treated as gambling proceeds and losses so they can regulate and control them. But the CFTC wants jurisdiction, and I'm guessing they will win that battle. My rebuttal to someone that says they should be treated as gambling winnings and losses would be "show me the authoritative source!".
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