North Carolina lawmakers appear at odds on a potential NC sports betting tax change.
On Monday, the North Carolina House unveiled its two-year, $66 billion budget. Noticeably absent from the proposal is an NC sports betting tax increase.
Last month, the Senate passed its version of the budget, complete with bumping the sports betting tax to 36% from 18%. The differences mean the budget discussion is likely headed to a conference committee.
Changing NC sports betting appropriations
The House proposal does not increase the tax rate. It does, however, change how the tax revenue is spent.
It adds the University of North Carolina and North Carolina State to the 13 other UNC System schools that receive money from sports betting. The proposal splits the revenue in the following way:
- $1 million to schools competing in Division I that do not participate in football
- $300,000 to each university that participates in Division II
- $3 million to the North Carolina Youth Outdoor Engagement Commission
- $10 million to the North Carolina Major Events, Games and Attractions Fund
- Additional revenue will send 20% to the universities and 50% to schools participating in Division I football, with the rest going to the state’s general fund.
Senate differences
The Senate doubled the sports betting tax rate and readjusted the appropriations.
That included a similar breakdown to the House’s. In the Senate version, UNC and NC State must meet a provision requiring them to play basketball games against the other in-state schools.
Sportsbook operators are asking bettors to contact their representatives against the increase. Americans for Tax Reform President Grover Norquist also released a statement against the increase.
NC sports betting revenue
Sportsbooks launched in the Tar Heel State in March 2024.
In the ensuing 13 months, the operators took $7.82 billion in wagers. That generated $799 million in sports betting revenue.
The state took in $136 million in taxes.
Lots of tax talk
Multiple states have at least discussed tax increases this year.
While Ohio lawmakers have denied Gov. Mike DeWine his wish to double the tax rate to 40% from 20%, another lawmaker has proposed adding a 2% handle tax. There is also active online casino legislation in the Buckeye State.
Maryland Gov. Wes Moore proposed raising the tax rate to 30% from 15%. Legislators denied that move, instead raising it to 20% in a budget signed by Moore this week.
New Jersey Gov. Phil Murphy is still pushing his increase. Other legislators have also discussed throughout the session, including in Indiana and Michigan.
