North Carolina to Impose 6% Tax on Prediction Markets, Recognizing Federal Jurisdiction

CoinFeed July 10 news, according to Bitcoin.com, North Carolina's signed budget bill takes divergent regulatory paths for prediction markets and sports betting. Starting January 1, 2027, the state imposes a 6% tax on net transaction fee revenue for prediction market platforms like Kalshi and Polymarket, but explicitly does not require them to obtain a state license, effectively recognizing the CFTC's federal regulatory authority; during the same period, it raises the sports betting tax rate from 18% to 23%. The state becomes the first to recognize the legality of CFTC-registered prediction markets while refusing to impose state-level licensing requirements. In contrast, Kentucky (14.25% excise tax) and Illinois (incorporating into sports betting regulatory framework) have chosen to confront platforms and face lawsuits.