North Carolina just drew a clear line between prediction markets and sports betting, and the tax rates tell you exactly which one the state wants to encourage.
Governor Josh Stein signed a $34 billion budget bill, SB 257, that introduces a 6% tax on prediction market operators’ net trading fee revenue while hiking the sports betting tax from 18% to 23% of gross wagering revenue. Both provisions take effect January 1, 2027.
A regulatory first for prediction markets
North Carolina is the first state in the country to formally recognize the Commodity Futures Trading Commission’s authority over prediction markets in statute.
If you’re a prediction market platform registered with the CFTC, you don’t need a separate state license to operate in North Carolina. That’s a big deal for platforms like Polymarket and Kalshi, which have spent years navigating a patchwork of state-by-state regulatory uncertainty.
