350% or 5BTC + 150 Spins!
New players only. Exclusive Welcome Bonus of 350% + 150 Free Spins
State lawmakers in North Carolina remain divided on whether to raise the tax rate on sports betting operators. The House has chosen not to follow the Senate’s proposal to double the current 18% rate.
Good to know
In April, the North Carolina Senate passed a two-year, $65 billion budget that includes a 100% tax hike on sportsbook operators. But the House’s own $66 billion plan sticks with the current tax rate, signaling a major disagreement that must be resolved by July 1.
Online sports betting launched in March 2024, and in just over a year, the state has seen more than $7.8 billion in wagers. Eight operators — FanDuel, DraftKings, BetMGM, Caesars, ESPN BET, Underdog, Fanatics Sportsbook, and bet365 — have generated close to $800 million in revenue during that time.
The Senate’s plan ties the tax increase to new spending for state universities. Under the proposal, UNC and NC State would receive more than $55 million over two years. Other schools in the system would see smaller amounts under a tiered funding model. Meanwhile, the House’s version would split $26.3 million among all FBS-level schools, including App State, East Carolina, and Charlotte, without changing the current tax rate.
Outside of the legislature, the proposed tax hike has drawn resistance from industry groups. The Sports Betting Alliance, which includes BetMGM, FanDuel, DraftKings, and Fanatics Sportsbook, launched a campaign opposing the Senate’s plan.
“Sports betting tax revenue already generates millions each year for North Carolina. But a 100% increase? That could drive players to the illegal market, putting those funds – and consumer protections – at risk,” the group said in a statement.
Retail sports betting and pari-mutuel wagering are not yet available in the state, though both could provide new revenue streams once introduced. For now, the focus remains on resolving the tax rate issue before the full budget is finalized.