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

The budget bill signed in North Carolina, USA, takes a different regulatory approach to prediction markets and sports betting. Starting January 1, 2027, the state will impose a 6% tax on the net transaction fee revenue of prediction market platforms such as Kalshi and Polymarket, but will not require them to obtain a state license, effectively acknowledging the CFTC's federal regulatory authority. During the same period, the tax rate on sports betting will be raised from 18% to 23%. This makes North Carolina the first state to recognize the legality of CFTC-registered prediction markets while refusing to impose state-level licensing requirements. In contrast, Kentucky has opted for a 14.25% consumption tax, and Illinois has chosen to incorporate prediction markets into its sports betting regulatory framework, facing legal challenges in the process.