North Carolina Lawmakers Close to Raising Sportsbook Taxes

Things are about to get a bit more expansion for online sportsbooks in North Carolina.

The state’s House and Senate have taken a step toward raising the annual tax rate for operators. The two sides had disagreed over the size of the hike, with proposals ranging from 20% to 30%. North Carolina’s current rate is set at 18%, which is right around the national average.

According to WRAL, representatives from both chambers agreed on a rate at the lower end of the debated range. The final rate has not been confirmed.

North Carolina’s sports betting market has been thriving since launching in March 2024. While its current rate is around the national average, lawmakers believe a slight hike would bring it closer to US markets that are seeing similar success.

“It’s been a tremendously successful policy in this state,” House Speaker Destin Hall told WRAL. “A lot of people apparently like to do that sort of thing for one reason or another. Got a lot of revenue to the state. I think, on our side of the building, it’s more so looking at, ‘How do we line up with other states?’ We want to be on the average of what other states are doing on a lot of these rates. A lot of the ideas are out there. I think we’re somewhat hesitant to tweak too much a program that’s worked pretty well for the state all things considered.”

Industry Already Pushing Back

The Sports Betting Alliance, which lobbies on behalf of the sports betting industry, has already begun pushing back against a proposed tax hike. They have been running public campaigns, warning North Carolina bettors that a hike could result in watered-down odds and fewer promotions.

The SBA’s effort began before the two chambers apparently agreed on a rate, meaning it could change once it is released. A small hike to around 22%-23% could lead the industry to drop most of its opposition. However, a rate higher than that could double those efforts.