North Carolina’s Senate could shake up the tax situation with sports betting operators in the state. The budget for 2025-27 includes a new section that would place a 36% tax on sports betting. That’s double the amount it is currently sitting at.
In North Carolina, sportsbooks pay out 18% of the total revenue throughout the year. The current and incumbent Republican Party has its sights set on doubling the tax that gambling operators would need to pay out.
This increased tax comes as online sports betting in the state has taken off rapidly. Since its legalization in March 2024, $135 million in taxes have been paid out from eight legal operators.
Over five billion dollars has been wagered since July 2024, with March 2025 hosting the largest total wagering revenue of $685 million.
The tax being proposed would be a key factor in North Carolina’s tax revenues and income. It is currently estimated that over the next two fiscal years, sports betting taxes alone could account for $53.4 million and $79.8 million in total revenue for the state.
Originally, it was estimated that reaching the $100 million mark would take five years. It cleared it in a year of making online sports betting legal.
North Carolina sports betting tax funds schools
However, it wouldn’t be all for revenue gains. Surprisingly, the proposal introduces a plan to fund sports at the 13 University of North Carolina System (UNC) departments. This would increase the baseline $300,000 to $500,000, and it is reported that some schools could see well over $1.5 million.
Another element of it would also pay coaches under the Keeping Our Coaches Act. This would siphon off $11 million to ensure funding for high school coaches.
The double tax proposal still puts North Carolina behind other states like New York and New Hampshire. These states require a 51% tax, while Delaware requires a 50% tax. It would put it in line with Pennsylvania, which also has a 36% tax rate on sports wagering.
