North Carolina Budget Authorizes Prediction Markets at 6% Tax, Awaiting Governor After 2-Chamber Passage
Updated
Updated · WRAL News · Jul 5
North Carolina Budget Authorizes Prediction Markets at 6% Tax, Awaiting Governor After 2-Chamber Passage
1 articles · Updated · WRAL News · Jul 5
Summary
A 634-page North Carolina budget would make the state the first to explicitly authorize prediction market betting and tax operators at 6% of net revenue if Gov. Josh Stein lets it become law.
The provision surfaced on page 626, cleared both chambers within days and imposes no state operating rules or license fee—unlike sports betting, which faces an 18% tax now, 23% under the budget, plus a $1 million license.
Critics say sportsbooks could rebrand as prediction markets to cut taxes sharply, threatening more than $287 million the state has collected since sports betting launched in March 2024.
That risk could hit universities as well: the budget newly allows UNC and NC State to receive up to $5.8 million a year each from sports-betting revenue, which opponents say could dry up.
The move also clashes with broader state skepticism, as North Carolina recently joined multistate briefs urging tighter federal oversight and warning prediction markets can enable insider trading and problem gambling.
Is North Carolina's low tax on prediction markets a fiscal masterstroke or a backdoor for unregulated gambling?
With billions at stake, will states or the federal government win the right to regulate these new markets?
North Carolina’s $15 Billion Gambling Shakeup: Tax Overhaul, Prediction Markets, and the Future of State Gaming Regulation
Overview
North Carolina’s newly passed budget brings major changes to the state’s gambling industry, aiming to better distribute gambling proceeds and respond to a rapidly growing market. A key update is the restructuring of sports betting tax revenue, which now allows the University of North Carolina and NC State to receive funds for the first time, after previously being excluded in favor of smaller schools. This shift follows successful arguments from these universities, who highlighted the large volume of bets placed on their teams. The changes reflect the state’s effort to create a fairer system and adapt to evolving industry dynamics.