North Carolina proposes doubling online sports betting tax
North Carolina Senate Republicans have unveiled a budget proposal to double the tax rate on sports betting operators, which would see it jump from 18% to 36%, according to WRAL News.
This would position North Carolina among the nation’s highest-taxed betting markets alongside New York (51%) and Pennsylvania (36%), potentially generating tens of millions for athletic departments.
Senate Republicans, who hold a commanding majority, plan to push the budget through this week despite anticipated resistance from betting operators like DraftKings and FanDuel.
In a move that could reshape college athletics in North Carolina, the budget would require the University of North Carolina and North Carolina State to play basketball games against other schools in the University of North Carolina system, influencing revenue distribution.
The University of North Carolina and North Carolina State would receive approximately US$11.5 million each from sports betting tax revenue, while smaller University of North Carolina system schools would receive tiered funding ranging from US$500,000 to US$1.5 million.
The financial stakes are significant, with online sports betting operators already contributing over US$135 million in taxes since online sports betting was legalized in March 2024.
“It’s our feeling that the success of the sports wagering program itself is something that has inured to the benefit of many of the campuses, and we wanted to extend it to other campuses,” said Senate leader Phil Berger, a Rockingham County Republican.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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