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North Carolina lawmakers are again looking at sports betting taxes as budget talks continue in Raleigh, with online sportsbooks now facing possible changes to the 18% rate set when the market opened in March 2024.
Good to Know
Online sports betting has brought North Carolina more than $287 million in surplus revenue since launch. Now, legislators may ask operators for more.
According to a WRAL report, sources said lawmakers are considering a higher tax on the eight licensed sports betting operators in the state. One option would lift the rate from 18% to somewhere between 20% and 30%. Another would add a fee on each wager.
Budget talks give the discussion extra weight. Republicans recently agreed to raise pay for state employees, and lawmakers are searching for funding sources as they work through the next state budget. An added tax on lottery sales has also been discussed as one way to help fund higher pay for teachers and state workers.
Support for the gaming tax ideas remains unclear. WRAL reported that it is not known whether lawmakers back the suggested increases.
North Carolina already debated a much higher sportsbook tax last year. The Senate included a 36% rate in its budget plan, but the House did not approve it. Since both chambers failed to reach a deal, the rate stayed at 18% for 2025 and 2026.
The per wager idea may bring a stronger reaction from operators. Illinois became the first U.S. state to use that model last summer. Its surcharge charges online sportsbooks 25 cents for each of the first 20 million bets and 50 cents per bet after that. In only the first two months of 2026, the fee produced an extra $20 million for Illinois.
However, major betting companies argued against the Illinois tax. Several operators passed the cost to customers through betting surcharges or higher minimum bet rules. Industry groups have also warned that added costs could send some bettors toward offshore or illegal betting sites.
FanDuel has already started asking North Carolina customers to get involved. Late last week, the operator sent an email warning that “some lawmakers in Raleigh want a brand new tax hike on N.C. fans.”
FanDuel added that “if we don’t stop them, bettors like you will pay the price” and that “your gameday gets more expensive every time you open the app.”
The Sports Betting Alliance, which includes FanDuel, DraftKings, bet365, BetMGM, and Fanatics, opposes changes to the North Carolina sports betting tax system. FanDuel asked customers to “take action” by sending a letter through the alliance website.
“Legal sports betting is generating real revenue for collegiate athletic departments across the state,” the letter states. “A tax hike would threaten that funding and hit fans like me directly.”