North Carolina's budget law defers prediction market regulation to the CFTC and sets a 6% tax rate, below other states' proposals.
Regulation & Gov ·
North Carolina has enacted legislation that defers oversight of prediction market platforms to the federal CFTC while imposing a 6% tax on net trading fees attributable to state residents, effective January 1, 2027. Governor Josh Stein signed the measure as part of the state's 2026 budget on July 7, positioning the state distinctly against more than a dozen states that have sought to regulate prediction markets as unlicensed gambling. The 6% rate stands well below the 23% tax applied to sports betting operators in the state and significantly lower than Kentucky's 14.25% transaction fee tax on similar platforms. The law explicitly states that prediction markets registered with the CFTC face no licensing, registration, or additional regulatory requirements in North Carolina.