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

Odaily Planet Daily News: The budget bill signed in the U.S. state of North Carolina adopts different regulatory paths for prediction markets and sports betting. Effective 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 recognizing the CFTC's federal regulatory authority. During the same period, the tax rate on sports betting 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 opted for a 14.25% excise tax, while Illinois has chosen to integrate prediction markets into its sports betting regulatory framework and is facing lawsuits.