North Carolina legislators are considering an increase to the tax rate paid by legal sports wagering operators, reportedly during budget talks. The report gives no proposed rate or further details.
A higher tax rate would affect the cost base of legal sports wagering operators in North Carolina.
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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.
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.