North Carolina has broken with the wave of states fighting prediction markets in court, using its new budget to tax platforms like Kalshi and Polymarket at 6% while explicitly declining to regulate them – a posture that effectively recognizes federal authority over the sector even as other states sue to assert their own. Sportsbooks in the state, by contrast, will now pay 23% in tax.
Key Takeaways
North Carolina’s signed budget taxes prediction markets at 6% of net trading fee revenue, effective January 1, 2027.The state declines to require prediction platforms to hold a state license, recognizing CFTC authority instead.Sports betting operators face a separate, higher 23% tax on gross wagering revenue, up from 18%, effective immediately.
