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North Carolina has approved a new 6% tax on prediction markets, but the levy will not take effect until Jan. 1, 2027. According to CDC Gaming, the first payments from operators will not be due until Jan. 31, 2028.
The change was included in the state’s latest budget bill, which took effect July 1. The source says the prediction market provision was added in Section 44.9 of the 630-plus-page measure during the final days of the legislative session in early July.
How the new tax is structured
The source says North Carolina will tax prediction market trades differently from traditional sports betting.
For prediction markets, the tax applies only to trades made from accounts registered with a North Carolina address. By contrast, traditional sportsbooks in the state are taxed on any bet made in North Carolina, whether the bettor is a resident or a visitor.
That distinction could matter because it ties the prediction market tax to account registration rather than simply where a transaction takes place.
Key dates for operators and observers
While the broader budget bill is already in effect, the prediction market tax follows a much longer timeline.
- July 1: North Carolina’s latest budget bill took effect
- Jan. 1, 2027: The new prediction market tax goes into force
- Jan. 31, 2028: First operator payments are due
CDC Gaming described the 6% levy as the first tax of its kind on prediction markets in the U.S.
What remains unclear
The source does not identify which operators or platforms will be subject to the tax. It also does not say how North Carolina will define or enforce account address registration for prediction markets, or whether any regulator or agency has been assigned rulemaking or enforcement authority.
For players and industry watchers, those implementation details may be the next points to watch as the 2027 effective date approaches.
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Source: As reported by cdcgaming.com.
