NC lawmakers are making quick work of a proposed online sports betting tax hike.
The North Carolina Senate approved a proposed two-year, $65 billion budget Thursday with a 30-15 vote. The budget, Senate Bill 257, includes a provision that would double the NC sports betting tax rate to 36% from 18%.
Senators released the budget plan earlier this week. House lawmakers now will get their say on the budget process.
NC sports betting tax hopes
North Carolina online operators launched in March 2024. Since then, the sportsbooks have generated more than $751 million in sports betting revenue, contributing $135 million to the state.
The eight NC sportsbooks would have effectively doubled that number with the proposed tax jump. If passed, the new tax rate would go into effect in October.
The extra taxes would increase the amount of money going to UNC System schools, including adding the University of North Carolina and NC State to the list of payees, as long as they meet a provision to play basketball games against the other in-state schools.
Tax hike talk
Multiple state legislatures have at least talked about raising sports betting taxes this year. Perhaps most notable was Ohio Gov. Mike DeWine, who proposed doubling the tax rate to 40% from 20% just two years after doubling the initial tax rate.
Lawmakers denied DeWine his wish last week, stripping it out of the budget.
Maryland Gov. Wes Moore proposed doubling the tax rate to 30% from 15%. The proposal has been pared back to a 5 percentage point increase during the legislative process.
New Jersey Gov. Phil Murphy also proposed tax increases on sports betting and online casino. It has not gained much traction with lawmakers.
Legislators in Indiana, Louisiana, Massachusetts and Michigan have also floated raising tax rates. Those measures have not moved far this session.
