Overview
- Governor Josh Stein signed SB 257 into law on July 7, 2026, making North Carolina the first state to statutorily declare the Commodity Futures Trading Commission has exclusive federal authority over prediction markets.
- The bill creates a 6% state tax on prediction platforms’ net trading fee revenue and raises the state sports betting tax to 23%, with both changes taking effect January 1, 2027.
- Under the new law, platforms registered with the CFTC do not need a separate North Carolina license to operate, giving firms like Kalshi and Polymarket clearer legal footing inside the state.
- The change contrasts with other states that treat some prediction markets as gambling and have imposed licensing rules or high transaction taxes, a patchwork that has prompted CFTC rulemaking and lawsuits.
- Courts and regulators are likely to determine the long‑term outcome, with Kalshi recently losing a preliminary injunction in New York and appealing to the Second Circuit while parallel litigation and federal actions continue.