The push to raise NC sports betting tax rates is still in progress, but groups are opposing the proposal.
Last month, the North Carolina Senate passed its proposed budget, which includes doubling the NC sports betting tax rate to 36% from 18%. The House has not released its proposed budget yet.
While the House could share a similar appetite for raising the tax rate, sportsbook operators and anti-tax groups are pushing back.
NC sports betting customers warned
Sportsbook operators are sending notes to users in the Tar Heel State to contact lawmakers about the tax rate. The companies are warning of worse odds and fewer promotions.
Meanwhile, Grover Norquist, president of Americans for Tax Reform, has also weighed in on the issue.
“While this tax hike is targeted on a politically unsympathetic and convenient target, we’ve seen cautionary tales play out in other states that took a similar confiscatory approach to gaming taxation,” Norquist wrote in a letter to the Senate last month.
North Carolina revenue
North Carolina’s legislature legalized online sports betting in 2023. Online sportsbooks launched in March 2024.
North Carolina bettors have wagered more than $572 million since the online launch. The eight sportsbooks have generated $799 million in sports betting revenue.
That has sent $136 million in taxes to the state.
Sports betting tax rate increases
Multiple states have raised sports betting tax rates after market launch. That includes Ohio, where Gov. Mike DeWine doubled the tax rate to 20% from 10% just months after launch in 2023. DeWine proposed another doubling of the rate this year before lawmakers rejected that move.
In Illinois, a tiered system was implemented last year, increasing the tax rate from a flat 15% to a ladder of up to 40% based on revenue.
This year, Maryland Gov. Wes Moore proposed doubling the tax rate to 30% from 15% in his budget, but lawmakers eliminated it. In Louisiana, a bill was recently introduced to raise the rate to 32.5% from 15%. That would help fund university athletic departments in the state.
