North Carolina Enacts Taxes on Prediction Markets and Gambling

North Carolina recently passed legislation to tax prediction markets and other forms of gambling. The new tax regime is part of the state’s budget, which became effective July 1, 2026.

What Happened

North Carolina Governor Josh Stein approved a state budget that includes new taxes on prediction markets and various gambling activities, according to Bloomberg Tax. The new fiscal measures came into effect on July 1, 2026, as reported by WRAL.com.

The state’s budget specifically addresses prediction markets, which are defined as online platforms where individuals can wager on the outcomes of future events. Kalshi is identified as one of the recognized operators within this market segment, according to the Winston-Salem Journal.

Key Details

• North Carolina’s budget, effective July 1, 2026, includes new taxes on prediction markets and gambling, as reported by WRAL.com.
• Governor Josh Stein approved the legislation implementing these taxes, according to Bloomberg Tax.
• Prediction markets are characterized as online platforms allowing wagers on future event outcomes, with Kalshi cited as an example operator by the Winston-Salem Journal.

Why It Matters

This legislative action signifies North Carolina’s move to incorporate prediction market activities into its regulated taxation framework. By taxing these online platforms, the state aims to generate new revenue streams. The inclusion of prediction markets alongside broader gambling taxation indicates a formalized approach to capitalizing on these emerging digital wagering opportunities, as suggested by the Carolnia Journal’s reporting on the budget raising sports betting tax and adding prediction markets.

Originally reported by Winston-Salem Journal·Published 12 Jul 2026, 10:00