North Carolina proposes doubling online sports betting tax
The North Carolina Senate plans to increase the tax rate from 18 to 36 per cent.
US.- A budget proposal presented in the North Carolina Senate includes a provision to double the sports betting tax rate in the state. Currently, sportsbooks pay 18 per cent of gross revenue in tax. The proposal seeks to double that to 36 per cent.
SB 257 proposes a $32bn to $33bn budget as the state faces a possible budget deficit from 2026. The Appropriations/Base Budget, Finance, and the Pensions and Retirement and Ageing committees all approved the budget on Tuesday. The Senate is expected to finalise the budget by Thursday and send it to the House for amendments and approval. If approved, the proposal would take effect on October 1.
If the tax increase is approved, North Carolina would tie for the third-highest tax rate in the US. New York has a 51 per cent tax rate, while Illinois’ progressive rate starts at 20 per cent but rises as high a 40 per cent. North Carolina’s proposal is on par with Pennsylvania’s rate.
Mobile sports wagering launched in North Carolina on March 11, 2024. In the first 12 months, bettors wagered $6.1bn in paid wagers and almost $500m in free or promotional bets. The current tax rate generated more than $135m in the first year. March 2025 set a new record for monthly betting handle with $685m in wagers.
