(AsiaGameHub) –   Former Chicago Mayor Rahm Emanuel has put forward a new 10% tax on online gambling and prediction markets to help fund research in fields where the United States is competing with China.

Ex-Chicago Mayor Lays Out Tax Proposal for Online Gambling

The former Illinois representative, White House chief of staff, and US ambassador to Japan’s plan would put a 10% federal transaction fee on all wagers placed through licensed online sportsbooks and casino apps, as well as on contracts bought on prediction platforms. He projects the measure could generate between $30 billion and $50 billion in revenue. These funds would be allocated to research in areas including artificial intelligence, national security technology, cancer, life sciences, fusion energy, and quantum computing.

This tax proposal comes after Emanuel previously called for a ban on all federal employees at every level from joining prediction markets. Putting his plan into practice requires federal legislation, and core details still remain undecided — such as whether the tax will apply to operators’ gross or net revenue, total betting volume, or each individual transaction.

Does This Proposal Have a Political Angle?

While figures like Gavin Newsom and Kamala Harris are widely regarded as leading contenders for the Democratic nomination ahead of the 2028 election, Emanuel could also join the race. Even so, he pushed back against questions about whether the policy launch was designed to gain an early edge over other Democratic contenders, instead saying his focus remains on “the American people getting ahead and America staying ahead.”

However, he still took the opportunity to criticize President Trump’s current governance of the country, arguing the nation has fallen into stagnation. Speaking of Trump, the sitting US president has recently been caught up in a strange controversy, after he apparently promoted the unlicensed gambling site Stake in a post on Truth Social.

Back to Emanuel, he explained that by proposing the new 10% fee to fund an “Innovation Fund”, he wants to move away from rewarding gambling and instead support entrepreneurs and investment in America’s future. He also argued the proposal will help the United States catch up with China, which he says has gained a competitive edge after President Donald Trump cut research support and university funding.

According to the Associated Press, between January and May 2025, the current administration cut $11 billion in funding from universities across the country, including major cuts to institutions such as Harvard, Penn, Columbia, Cornell, Northwestern, Brown, and UCLA.