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

Odaily reports that a budget bill signed in the U.S. state of North Carolina establishes different regulatory paths for prediction markets and sports betting. Effective January 1, 2027, the state will levy a 6% tax on net transaction fee revenue from prediction market platforms such as Kalshi and Polymarket, but will not require them to obtain state licenses, effectively recognizing the CFTC's federal regulatory authority. In the same period, the tax rate for sports betting will increase from 18% to 23%. North Carolina becomes the first state to acknowledge the legality of CFTC-registered prediction markets while declining to impose state-level licensing requirements. In contrast, Kentucky has opted for a 14.25% excise tax, and Illinois has chosen to incorporate prediction markets into its sports betting regulatory framework, a move that has faced lawsuits.