North Carolina Bill Recognizes CFTC's ‘Federal Regulatory Authority’ Over Prediction Markets
North Carolina has taken a rare pro-federal stance in the prediction-markets fight by recognizing CFTC authority over platforms like Kalshi and Polymarket. Governor Josh Stein signed the measure on July 7 as part of the state budget, saying CFTC-registered and licensed prediction markets may operate lawfully in North Carolina because the Commodity Exchange Act gives the agency exclusive federal regulatory authority. The state will not add licensing or registration rules, but it will tax operators 6% of net trading-fee revenue tied to North Carolina residents starting Jan. 1, 2027. That is much lighter than North Carolina’s 23% sports-betting tax and far softer than other states’ approaches. Elsewhere, states have treated prediction markets as illegal sports betting, sparking lawsuits and split court rulings. The conflict is increasingly headed toward the Supreme Court, while the CFTC also works on national event-contract rules.
