Why did North Carolina approve federally regulated prediction markets?

North Carolina approved federally regulated prediction markets because the new law recognises the Commodity Futures Trading Commission as the primary regulator. The law allows CFTC-registered platforms to operate legally in the state from Jan. 1, 2027.

What are the new tax rules for prediction markets in North Carolina?

North Carolina will tax CFTC-regulated prediction market platforms at 6% of their net trading fee revenue from state residents. The tax takes effect on Jan. 1, 2027.

How is North Carolina's approach different from other states?

North Carolina recognises federal oversight of prediction markets instead of applying state gambling laws. Kentucky and Illinois have adopted different tax or licensing rules that have led to legal disputes.

What does the new law mean for Kalshi and Polymarket?

Kalshi and Polymarket can legally operate in North Carolina if they are registered with the Commodity Futures Trading Commission. The law provides a clear legal framework for federally regulated prediction markets in the state.

Why is Kalshi still involved in legal disputes?

Kalshi is challenging state efforts to regulate its prediction markets under gambling laws. The company has appealed a New York court ruling that allowed the state to continue enforcing its gambling laws while the case proceeds.

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North Carolina backs federally regulated prediction markets

Written by Jon CuthbertPublished Jul 10, 2026, 6:58 AM

North Carolina has approved a law recognising federal oversight of prediction markets.
The law allows CFTC-regulated platforms to operate legally from January 2027.
Prediction markets will face a 6% tax on trading fee revenue earned from state residents.

North Carolina has passed a law recognising the Commodity Futures Trading Commission's authority over prediction markets and allowing federally regulated platforms to operate from Jan. 1, 2027.

The new law applies to CFTC-registered platforms such as Polymarket and Kalshi and introduces a 6% tax on their net trading fee revenue from North Carolina users.

The legislation also states that the Commodity Exchange Act gives the CFTC exclusive authority to regulate prediction markets.

North Carolina's approach differs from states including Kentucky and Illinois, which have applied gambling laws or higher taxes to prediction market platforms.

Kalshi is still fighting legal challenges in several states over whether its sports event contracts should be regulated under state gambling laws.

A federal judge recently refused to block New York from enforcing its gambling laws against Kalshi while the case continues.

Kalshi has appealed that decision, and the legal dispute over federal and state control of prediction markets remains unresolved.