Published on: June 23, 2026, 02:44h.
Updated on: June 22, 2026, 04:45h.
- Lawmakers in North Carolina have approved an increase in the online sports betting tax from 18% to 23%
- This tax hike aims to support Governor Josh Stein’s proposed $68 billion state budget
- Sportsbooks and industry advocates warn that this increased tax could result in reduced odds and fewer promotional offers
North Carolina plans to boost its mobile sports betting tax by 5%. Will bettors ultimately bear the financial burden?
WRAL News sports journalist Brian Murphy reported that North Carolina lawmakers have reached a decision on raising the online sports betting tax to 23%, up from 18%.
State Senator Jim Burgin (R-Lee, Harnett) confirmed to Murphy that 23% was the compromise, although he had initially advocated for a much steeper tax of 50%. The slight increase to 23% may only yield marginal financial benefits in terms of state revenue.
Even with the new rate of 23%, North Carolina’s sports betting tax is relatively close to the national average among over 30 states that impose taxes on commercial sportsbooks.
Limited Advantages
The General Assembly is searching for funds to meet a $3 billion increase in spending proposed by Governor Josh Stein (D). They are looking at sports betting as a potential revenue source, but revenues from sports betting are typically lower than those from slot machines, meaning the tax benefits will not substantially close funding gaps.
In the 2025 fiscal year (from July 2024 to June 2025), North Carolina’s online sportsbooks reported a gross revenue of $647.7 million. At the original tax rate of 18%, the state’s share was $116.6 million. If the tax were increased to 23%, the state’s revenue would rise to $148.9 million—a difference of approximately $32.3 million.
Governor Stein’s proposed budget for 2025-27 is a $68 billion allocation aimed at enhancing public education, childcare support, workforce development, and offering tax relief to lower- and middle-income families. He aims to dedicate about $2.3 billion to improve educator funding with average raises of 11% and $300 annual stipends for school supplies.
Additionally, Stein proposes pay increases of up to 15% for law enforcement officers, correctional personnel, and first responders, complete Medicaid funding to protect coverage for over three million North Carolinians, and a $448 million investment in job training, apprenticeship initiatives, and workforce housing.
The Financial Burden on Bettors
Concerns arise that consumers may end up footing the bill for the state’s tax hike.
When state taxes rise, the additional costs are usually transferred to consumers—affecting your wallet directly. It impacts North Carolina sports enthusiasts who play responsibly and may push them to seek out illegal offshore options lacking consumer protections,” stated the Sports Betting Alliance, urging residents to inform their legislators to oppose the increase in sportsbook taxes.
As sportsbook revenues diminish, it is argued that bettors may encounter less favorable odds and fewer incentives compared to states with lower taxes. Regulated and taxed sportsbooks are already reporting that they face a competitive disadvantage against prediction markets, the federally regulated trading platforms now offering sports betting.