North Carolina Recognizes CFTC's Authority Over Prediction Markets

North Carolina has passed a budget law that explicitly recognizes the Commodity Futures Trading Commission (CFTC) as the federal regulator for prediction markets operating within the state. This includes platforms such as Kalshi and Polymarket. The law also sets a state tax rate of 6% on these platforms, which is significantly lower than what other states are considering. This move clarifies the legal framework for prediction markets in North Carolina, potentially encouraging their growth by providing regulatory certainty and a favorable tax environment. The CFTC's role as the federal regulator means that these platforms are subject to federal oversight, which can impact their operations and compliance requirements. The lower tax rate could make North Carolina an attractive location for prediction market operators, possibly influencing their strategic decisions and market expansion plans.