North Carolina has enacted legislation acknowledging that federal Commodity Futures Trading Commission oversight preempts state regulation of prediction market platforms. The new law establishes a state framework by imposing a 6% tax on the net trading fee revenue that platforms generate from North Carolina residents. By recognizing CFTC preemption, the state signals that federally regulated prediction market operators can serve its residents without facing conflicting state licensing regimes, while still contributing revenue to the state. The move reflects a broader trend as prediction markets gain popularity and states grapple with how to treat the emerging sector. It also underscores ongoing debates about whether such platforms fall under federal commodities jurisdiction or state gambling laws. The measure could serve as a model for other states seeking to capture tax revenue from prediction market activity while deferring regulatory authority to federal agencies.
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