Former Chicago Mayor and potential Democratic presidential candidate Rahm Emanuel has a solution to funding industries competing on a global scale: taxing online betting and prediction platforms.
Emanuel said his proposal would help the U.S. compete instead of coming up “second place against China.”
Key Takeaways
- Emanuel suggested that his proposed change could lead to $30-50 billion in tax revenue.
- President Donald Trump in 2025 cut $11 billion in funding from prestigious universities.
- Emanuel said his proposal was not primarily intended to bolster his political profile ahead of the 2028 election.
Emanuel’s proposal would apply a 10% federal transaction charge to all bets placed at licensed online sportsbooks and online casino apps, as well as all contract purchases at prediction platforms, according to Bloomberg.
The former Illinois Rep., White House Chiefs of Staff, and ambassador to Japan estimated that implementing the tax would generate $30-50 billion in revenue. The proceeds would be used to support research on artificial intelligence, national security technology, cancer research, life sciences, fusion energy, and quantum computing.
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 (@RahmEmanuel) April 15, 2026
President Xi is investing in the future,… pic.twitter.com/fjZFb6kGA2
He also claimed that the proposal would draw America back on par with China, which has benefited from President Donald Trump’s gutting of research and funding for universities. The Associated Press reported that between January and May 2025, his administration cut $11 billion from universities across the country, including major cuts for prestigious institutions such as Harvard, Penn, Columbia, Cornell, Northwestern, Brown, and UCLA.
“I’m talking about a specific innovation fund that keeps America beating China rather than going to second place against China. And that’s how you sell this,” he said.
Emanuel’s suggestion 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.
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Defining an agenda
While Gavin Newsom, Kamala Harris, and Alexandria Ocasio-Cortez are widely viewed as the frontrunners to secure the Democratic nomination ahead of the 2028 election, Emanuel could throw his hat into the ring. He has not committed to making a run, but he noted that his new proposal was not primarily intended to propel his Presidential campaign.
“While that may be a side benefit, I’m more interested in the American people getting ahead and America staying ahead,” he said in an interview.
Emanuel also emphasized that his plan would add “new money, not [replace] old money” for the federal government, comparing it to taxes on products such as alcohol and tobacco. Both products are taxed according to the classification of the item.
The career politician has also been adamant that Democrats need a more specific agenda. He has slowly started to reveal what could become the platform of his campaign in the event he decides to enter the race for 2028.
“We’re stagnant and worse than stagnant under President Trump,” he said, according to the Chicago Sun-Times. “We’re cutting the NIH [National Institutes of Health] and the National Science Foundation,” Emanuel said. “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.”
More regulations for betting and predicting
Emanuel’s tax suggestion isn’t his first piece of advice for the government on gambling and prediction apps. He previously suggested that federal employees should be banned from using prediction platforms due to the possibility of insider trading and conflicting interests.
He also acknowledged that betting and prediction companies are likely to oppose the proposal, which would add more taxes to what he called a $400 billion industry.
