- North Carolina legislators have agreed to increase the tax rate on sports betting in the state, though the exact figure has not yet been announced.
- The current tax rate on sports betting operators in the state is 18%.
- Negotiations have reportedly been to increase the tax rate above 20%, while sports betting operators have pushed back against the change.
RALEIGH, N.C. – Lawmakers in North Carolina have agreed on a tax hike for sports betting operators to increase revenue from sports betting in the state.
The decision comes in the wake of the Carolina Hurricanes reaching the Stanley Cup Finals, which has been a driving force in an increased number of sports betting tickets in recent months.
The state’s current tax on sports betting operators sits at 18%, which is around the middle relative to other states’ tax rates. There have been reports that negotiations have centered around a tax rate in the 20-30% range, which would likely put the state inside the top ten highest tax rates in the country amongst states with legal sports betting sites.
Of course, an increased tax rate would result in more revenue for the state, which would then be able to be invested back into the state for other projects and public works. A few ways that the state could choose to use that extra revenue include:
- Education
- Mental Health / Addiction Services
- Local Infrastructure
- Economic Development
- Public Safety
- Healthcare
- Housing
The Senate proposed a change to a 36% tax rate in its budget last year, but it was ultimately kept at 18% in the House-passed budget.
Sports betting operators have pushed back against changes in the state, citing worse odds and fewer promotions for players as potential drawbacks of a tax hike. They also argue that such changes could drive players to offshore sports betting sites, which would take away from state revenue entirely.
It will be a balancing act for the state to satisfy the wants and needs of players and sports betting sites in North Carolina in any case. Some people, including House Speaker Destin Hall, have expressed uncertainty about a tax hike, stating, “I think we’re hesitant to tweak too much a program that’s worked pretty well for the state all things considered.”
