North Carolina sets 6% tax on prediction market operators from January

According to, citing WFAE, North Carolina's new spending plan imposes a 6% levy on the net trading fee revenue of prediction market operators. The measure takes effect in January.

The provision was included in the state's $34bn budget bill, which Governor Josh Stein signed into law in July. The tax is expected to raise about $1m in the 2026-27 fiscal year.

According to the source, Kalshi and Polymarket stand out as the main venues where election contracts are available. On those marketplaces, participants can speculate on political outcomes instead of making a fixed wager in the same format used in conventional sportsbooks.

A WFAE discussion addressed whether prediction markets belong in the gambling category or should instead be viewed as another type of financial market, a distinction the source says could influence the way states and regulators handle taxation, oversight and consumer protections. The segment also covered concerns around ethics, youth engagement and betting on elections.

The programme's guests were Michelle Malkin, Danny Funt and Harry R. Lloyd. According to the discussion summary, it remains unclear which further regulations lawmakers might consider or how state authority could overlap with federal supervision.