North Carolina Raises Betting and Prediction Market Taxes

United States.- 10 July 2026 www.zonadeazar.com North Carolina Governor Josh Stein has signed the state’s new budget into law, increasing the online sports betting tax from 18% to 23% while introducing a 6% tax on the net fee revenue generated by prediction market operators.

News Details

The legislation makes North Carolina one of the first US states to establish a dedicated tax framework for federally regulated prediction markets. The new 6% levy applies to operators’ net transaction fee revenue, while the higher sports betting tax is intended to increase state revenue from the regulated wagering industry.

The budget continues to distinguish between the two sectors. Licensed sportsbooks remain subject to state regulation and licensing requirements, whereas prediction markets continue to operate under the oversight of the Commodity Futures Trading Commission (CFTC), a distinction that remains at the centre of ongoing regulatory debate.

The move comes as platforms such as Kalshi and Polymarket continue expanding across the United States while facing legal and regulatory challenges in several states.

Industry Context

North Carolina’s approach reflects a growing trend among US states seeking to tax prediction markets despite the absence of a definitive legal framework governing their relationship with state gambling laws. The coexistence of separate tax regimes for sportsbooks and prediction markets may influence future legislative initiatives elsewhere.

Next Steps or Impact

With the budget now enacted, licensed sportsbooks will face higher taxation while prediction market operators will begin paying state taxes for the first time. The legislation is expected to become an important reference point for future tax and regulatory reforms across the United States.

Edited by: @_fonta