North Carolina Becomes First State to Legally Recognize CFTC Prediction Markets With 6% Revenue Tax

New budget law in North Carolina officially acknowledges Commodity Exchange Act-registered prediction markets as legal. The clause gives lawfully approved event-contract platforms the right to run in the state free of any other state registration or license requirements. Effective January 1, 2027, it also adds a 6% tax on net trading fee income assigned to North Carolina.

This move makes North Carolina the first state to formally codify federal CFTC authority over prediction markets. Though they now have to meet the particular tax requirement on local income, operators get explicit legal clearance to run. The structure strikes a compromise between a fresh budgetary demand for platforms operating in the state and regulatory acceptance.

The bigger question is whether other states will adopt this strategy or resist it. Reaffirming its stance that prediction markets come under its sole control, the CFTC recently said, North Carolina's strategy may guide other states in their future clarity on the topic.