Published on: June 8, 2026, 09:12h.
Updated on: June 8, 2026, 09:12h.
- North Carolina anticipates an increase in its online sportsbook tax
- The state is considering $3 billion in additional budget expenditures
- North Carolina’s sports betting tax generated $116.6 million in the last fiscal year
Legislators in North Carolina are likely to elevate the state’s tax on sports betting revenue, which will potentially be borne by bettors.
Since its launch in March 2024, commercial sports betting has been operational in North Carolina, with eight regulated online sportsbooks available alongside in-person betting at tribal casinos.
The state’s commercial sportsbooks are mandated to contribute 18% of their gross sports betting revenue to government coffers, which is the amount left after winning bets are paid out. Current negotiations for the 2025-2027 biennial budget indicate a strong possibility of raising this tax rate.
While earlier discussions hinted at a possible 12% increase, WRAL reports that the anticipated adjustment may actually be between 2% and 7%.
The Impact of Sports Betting Taxes
North Carolina legislators face pressure to raise funds to support a $3 billion expenditure increase.
Governor Josh Stein (D) has proposed $1,500 bonuses for public school teachers and an additional $300 for classroom essentials. His plan also includes tax reductions totaling nearly $380 million aimed at lower- and middle-income families, as well as 10% pay raises for law enforcement and state safety personnel.
Despite North Carolinians wagering over $6.4 billion on sports last year—amounting to $15.3 billion since March 2024—the tax revenue collected remains modest.
For the 2025 fiscal year (July 2024 through June 2025), sportsbooks reported a gross revenue of $647.7 million. The state’s share from the 18% tax came to $116.6 million.
If the sports betting tax were increased to 25%, the state’s revenue for the 2025 fiscal year could only reach $161.9 million, resulting in an incremental gain of $45.3 million.
Governor Stein’s budget forecasts indicate a spending plan exceeding $35.4 billion over three years. Even with a projected increase to the 25% tax, three years of sports betting taxes would contribute a mere 1.37% to this budget.
Concerns from Consumers
Proponents of lower sports betting taxes warn that any hike in taxes could be shifted to consumers, leading to fewer promotions and incentives from sportsbooks—including free bets and enhanced odds.
Bettors in states with higher taxes frequently express dissatisfaction at receiving less favorable odds compared to those in states with lower tax rates.
“This tax increase will solely burden licensed and regulated companies that have contributed significant tax revenue to our state,” stated the Sports Betting Alliance in a comment to WRAL. “We encourage state leaders to prioritize strengthening the legal framework that safeguards players, supports employment, and deters unlicensed operations in North Carolina.”
Currently, North Carolina’s 18% sports betting tax is positioned in the middle range among the 39 states that impose similar taxes.