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North Carolina Signs Law Taxing Prediction Markets at 6%, Sports Betting at 23%, on July 7

Regulation & Policy

2026-07-09 23:37:35

On July 7, Governor Josh Stein signed North Carolina's $34 billion fiscal-year budget, enacting Session Law 2026-41, which imposes a 6% tax on prediction market operators' net trading fee revenue effective January 1, 2027, and raises the tax on licensed online sports betting from 18% to 23% of gross wagering revenue, effective immediately. Notably, the law does not require prediction market platforms to hold a state license, instead recognizing CFTC-registered prediction markets as lawful under federal authority. According to gaming analyst Dustin Gouker, this appears to mark the first time a state has explicitly acknowledged CFTC oversight while declining to impose its own licensing or regulatory requirements on prediction market operators.

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