North Carolina lawmakers reportedly reached an agreement to increase the sports betting tax in the upcoming state budget. The available report gives a possible rate range of 20% to 30%.
A higher state tax rate would affect sports betting operators' tax obligations in North Carolina.
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Nevada authorities argued in a court filing that Kalshi’s acceptance of a North Carolina revenue tax acknowledges states’ authority over prediction markets. The filing forms part of Nevada’s legal dispute with Kalshi.
Nevada argues that North Carolina’s prediction market tax weakens Kalshi’s opposition to state oversight. The dispute concerns state authority over Kalshi’s federally regulated exchange.
North Carolina enacted a 6% tax on prediction-market net trading fees as part of its newly approved budget, signed by Governor Josh Stein earlier in July. The measure applies no licensing requirements, while the state also raised the mobile sports betting tax from 18% to 23%; the report estimates the prediction-market levy will raise about $1 million in fiscal 2026–27.
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.
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.