North Carolinians Wagered $8 Billion on Sports in Fiscal 2026

North Carolina residents placed approximately $8 billion in sports bets during fiscal year 2026. While the state continues to collect revenue from these wagers, the mechanics of prediction markets have created new scenarios where bettors can directly influence the events they are gambling on.

Former U.S. Representative George Santos became the first individual banned for life from the betting platform Kalshi in August. He wagered that he would not attend the State of the Union address, then stayed home to collect the winnings. Santos told followers he planned to attend the event, which may have affected how other users placed their bets.

Climate scientist Kaitlyn Trudeau noted that financial incentives now accompany the ability to start fires. During the Los Angeles wildfires in January, users on Polymarket bet on the number of acres consumed, the locations reached, and containment timelines. The platform allows anyone over 18 to wager on a wide range of topics, including reality television, Time Person of the Year, and midterms.

Military personnel have also used inside information to place large bets. A U.S. Special Forces soldier in North Carolina faced charges for using classified details to wager on the capture of former Venezuelan President Nicolás Maduro. Prosecutors stated the soldier helped plan and execute the operation, and his alleged long-shot bet reportedly generated over $400,000. Another service member reportedly earned $1 million by betting on military actions in Iran and Venezuela where they were involved.

North Carolina took a different regulatory approach than New York, Illinois, and Kentucky. Those states sued prediction platforms alleging unlicensed gambling. North Carolina instead chose to tax all prediction markets earlier this year. The state’s strategy focuses on capturing the revenue generated by these digital wagering platforms rather than suing them out of business.

The expansion of betting options includes markets on specific weather events and geopolitical shifts. Users can now stake money on whether a country will be invaded or if specific neighborhoods will experience house fires. The state’s tax policy applies to these prediction markets alongside traditional sports betting, ensuring a steady stream of revenue from both sectors.