North Carolina to Impose 6% Tax on Prediction Markets, Acknowledging CFTC Federal Regulatory Authority

Odaily reports that the budget bill signed by the U.S. state of North Carolina adopts a different regulatory path for prediction markets and sports betting. Starting January 1, 2027, the state will impose a 6% tax on net transaction fee revenue for prediction market platforms such as Kalshi and Polymarket, but will not require them to obtain a state license, essentially recognizing the CFTC's federal regulatory authority. During the same period, the sports betting tax rate will increase from 18% to 23%. This makes North Carolina the first state to acknowledge the legality of CFTC-registered prediction markets while refusing to impose state-level licensing requirements. In contrast, Kentucky has chosen to levy a 14.25% consumption tax, and Illinois has opted to incorporate prediction markets into its sports betting regulatory framework, which is currently facing lawsuits.