North Carolina lawmakers are debating a proposed increase to the state’s 18% tax on gross sports wagering revenue, with rates of 20% to 30% under discussion, according to the report. A previous Senate proposal to raise the rate to 36% stalled after the House did not support it.
A higher tax rate could affect sportsbook costs and the promotions and odds operators offer in North Carolina.
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North Carolina enacted a 6% tax on prediction-market net trading fees as part of its newly approved budget, signed by Governor Josh Stein earlier in July. The measure applies no licensing requirements, while the state also raised the mobile sports betting tax from 18% to 23%; the report estimates the prediction-market levy will raise about $1 million in fiscal 2026–27.
North Carolina Governor Josh Stein signed the state’s fiscal 2026 budget, which taxes prediction-market operators at 6% of net trading-fee revenue. The source names Kalshi and Polymarket as examples of affected companies and says the measure forms part of a wider gambling tax increase.
North Carolina lawmakers are considering a proposed state budget that would change gambling-loss deductions and sportsbook reporting, alongside tax measures for betting operators and prediction-market platforms. The proposal would apply deductions retroactively from 1 January 2025, require reporting of annual winnings over $2,000, raise the sportsbook revenue tax from 18% to 23%, and impose a 6% tax on prediction markets; it still requires votes in both chambers.
North Carolina lawmakers advanced a tax package that would raise the online sports betting tax from 18% to 23% and require operators to report customers who win more than $2,000 from bets. The proposal is expected to receive Senate approval before going to Governor Josh Stein; industry representatives warn the higher tax could reduce promotions and worsen odds.
North Carolina lawmakers are considering raising the tax on sports betting revenue during state budget negotiations, according to reports. The current rate is 18%, and the increase could be as much as 12 percentage points. The General Assembly aims to finalise its budget next month, with the legislative session running through August.