North Carolina Governor Josh Stein signed the state’s fiscal 2026 budget, which taxes prediction-market operators at 6% of net trading-fee revenue. The source names Kalshi and Polymarket as examples of affected companies and says the measure forms part of a wider gambling tax increase.
The tax changes the cost of offering prediction-market contracts in North Carolina.
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North Carolina lawmakers have approved a budget that allocates part of sports betting tax revenue to university athletic departments. Legislative analysts project revenue of US$206 million in 2026–27 under an increase in the tax rate on licensed operators from 18% to 23%. Nine UNC System schools are projected to receive $3 million each next year.
North Carolina lawmakers are considering a proposed state budget that would change gambling-loss deductions and sportsbook reporting, alongside tax measures for betting operators and prediction-market platforms. The proposal would apply deductions retroactively from 1 January 2025, require reporting of annual winnings over $2,000, raise the sportsbook revenue tax from 18% to 23%, and impose a 6% tax on prediction markets; it still requires votes in both chambers.
North Carolina lawmakers advanced a tax package that would raise the online sports betting tax from 18% to 23% and require operators to report customers who win more than $2,000 from bets. The proposal is expected to receive Senate approval before going to Governor Josh Stein; industry representatives warn the higher tax could reduce promotions and worsen odds.
North Carolina lawmakers have finalised an increase in the online sports betting tax rate from 18% to 23%, state Senator Jim Burgin confirmed. The new rate takes effect on 1 July; operators and industry groups opposed the increase, warning it could affect customer incentives and market competitiveness.
The US Commodity Futures Trading Commission sued Kentucky, challenging state laws affecting prediction markets and a tax on their transaction fees. The tax, due to take effect on 1 January 2027, requires operators to pay 14.25% of monthly transaction fees; the CFTC is seeking to block enforcement.