North Carolina lawmakers approve higher sports betting tax and new reporting requirements
The proposal would raise the tax rate on online sportsbooks and require operators to report players who win more than $2,000.
US.- The North Carolina Senate has voted 27-18 in favour of the tax reforms outlined in Senate Bill 595. The legislative package includes a proposal to lift the tax rate on online sports betting operators from 18 to 23 per cent.
The bill would also would require licensed sportsbooks to report customers who win more than US$ 2.000 from betting. The move is intended to improve compliance and curb underreported gambling income. The bill still needs House approval before it can head to Governor Josh Stein.
If the measure is enacted, sportsbooks would have to decide whether to absorb the added expense or pass part of it on to customers through changes to promotions, pricing or betting products. Industry representatives say the higher tax rate could prompt sportsbooks to scale back promotions and offer less competitive odds as they adjust to the added cost. Some have warned that this would make the market less attractive and could drive players towards offshore platforms.
Several states have moved to raise taxes on sports betting. The tax rise in Illinois led operators including BetMGM, Hard Rock and Rush Street Interactive to revise their strategies, with some introducing minimum bet requirements.
