North Carolina will impose a 6% tax on net transaction fee revenue for prediction market platforms like Kalshi and Polymarket starting January 1, 2027. The state will not require these platforms to obtain a state license, recognizing the Commodity Futures Trading Commission's (CFTC) federal regulatory authority. This move makes North Carolina the first state to acknowledge the legality of CFTC-registered prediction markets without imposing state-level licensing requirements. In contrast, North Carolina will increase the sports betting tax rate from 18% to 23% during the same period. Other states, such as Kentucky and Illinois, have taken different approaches, with Kentucky imposing a 14.25% excise tax and Illinois integrating prediction markets into its sports betting framework. The CFTC has been involved in legal battles with several states over jurisdiction, with mixed outcomes in federal courts. The ongoing dispute is expected to reach the Supreme Court.