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

Odaily Planet Daily News A 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 be increased from 18% to 23%. The state becomes the first to acknowledge the legality of CFTC-registered prediction markets while refusing to impose state-level licensing requirements. In comparison, Kentucky has chosen to levy a 14.25% excise tax, while Illinois has opted to incorporate prediction markets into its sports betting regulatory framework and is currently facing litigation.