Lawmakers in North Carolina want to cash in on the massive success of the legal sports betting market since it went live in March 2024. Handle hit a record $685m last month, largely because of the massive interest in March Madness.
A proposal submitted to the state Senate on Monday aims to double the tax rate from the current 18% to 36%. If this change comes into effect, North Carolina would only be behind the flat tax rates of four other states.
lawmakers think that doubling the tax rate would bring in an extra $53m during the 2025/2026 fiscal year
In the first year of legal sportsbooks, the eight licensed operators contributed over $135m in tax revenue, which is significantly more than the pre-legalization estimates. Lawmakers think that doubling the tax rate would bring in an extra $53m during the 2025/2026 fiscal year.
Sportsbook operators didn’t waste any time in fighting back against the idea, with DraftKings sending messages to customers in the Tar Heel State to oppose the measure:
North Carolina isn’t the first state to consider hiking sports betting taxes. Illinois was the first to do so when it changed its model to a tiered system up to a maximum of 40% in July. The governors of Ohio and Maryland failed recently to double their taxes in their own jurisdictions, while New Jersey and Massachusetts are currently considering proposals.
