North Carolina is set to raise its sports betting tax rate under a budget deal that legislators have reached in principle, according to reporting from WRAL. House budget writer Representative Donny Lambeth confirmed the House and Senate have agreed to increase taxes on the state's eight licensed sports betting operators, though he declined to specify the exact figure. Sources familiar with the discussions told WRAL that a tentative agreement was reached at the lower end of a 20-to-30-percent range, pointing to a new rate of approximately 20 to 25 percent.
North Carolina currently collects 18 percent of gross wagering revenue from its licensed operators, a rate set when the market launched in March 2024. The state has eight active sportsbook operators, including the national leaders. If the new rate takes effect, North Carolina would join a growing list of states, including Illinois, that have revised their sports betting tax structures upward after the initial market launch.
Why the Rate Is Rising
The push to raise sports betting taxes in North Carolina reflects a broader legislative dynamic playing out across the country. State governments that initially set competitive tax rates to attract operators and establish regulated markets are now recalibrating as the revenue potential of mature markets becomes clearer. North Carolina's sports betting market has grown rapidly since launching, providing a visible and politically uncomplicated revenue stream for budget negotiations.
Last year's budget battle in Raleigh illustrated the tension on this issue clearly. The Senate proposed a 36 percent rate in its budget while the House-passed version maintained the existing 18 percent. The current tentative agreement at around 20 to 25 percent represents a meaningful compromise, though it falls well short of the Senate's original ask. Industry groups pushed back heavily against any increase, warning of margin compression and reduced promotional activity for bettors.
As part of the same budget discussions, sources indicated that UNC and NC State could receive a share of sports betting tax revenue at levels comparable to other universities already benefiting from current allocations. The deal is not yet finalized, and the figures could change as lawmakers complete the broader budget agreement in the coming weeks.
What Changes for Bettors
A tax increase at the operator level rarely translates immediately into worse odds or fewer promotions for individual bettors. However, it creates sustained margin pressure that operators manage over time by reducing acquisition spending, trimming promotional budgets, or adjusting their odds competitiveness relative to markets with lower tax environments. The eight operators in North Carolina compete in a young, growing market where promotional offers have been generous since launch, and that calculus would shift under a higher tax rate.
The North Carolina market is also notable for being one of the few large-population states without legal online casino gambling, which means sports betting is the primary digital gambling revenue source for both operators and the state treasury. Higher taxes on that revenue stream will be watched closely by operators in other states where similar legislative discussions are brewing. You can review the current landscape of legal options through our guide to North Carolina sportsbooks, and compare the available DraftKings promo code offers currently active in the state.
