North Carolina Governor Josh Stein has officially signed into law a bill that recognizes federal oversight by the U.S. Commodity Futures Trading Commission (CFTC) over prediction markets. This concerns platforms such as Kalshi and Polymarket, which previously operated in an ambiguous legal space at the state level.
Tax Rate and Licensing Exemption
A key element of the new regulation is the introduction of a 6% tax on net trading commissions derived from transactions by North Carolina residents. At the same time, platforms are not required to obtain a separate local license, which significantly simplifies their legal operations in the state. This approach reduces administrative barriers while ensuring tax revenue for the state.
Implications for the Industry
This move marks an important precedent: the state effectively delegates authority for overseeing prediction markets to the federal regulator, while focusing itself on the fiscal function. For platform operators, this means a more predictable environment, although the tax burden may affect the profitability of operations in the region.
My expert analysis: North Carolina's decision is a logical compromise between regulation and taxation. Prediction markets, especially those based on blockchain, are increasingly drawing the attention of authorities, and this law could serve as a model for other states seeking to benefit from this segment without stifling innovation through excessive bureaucratic requirements.