North Carolina lawmakers have finalised an increase in the online sports betting tax rate from 18% to 23%, state Senator Jim Burgin confirmed. The new rate takes effect on 1 July; operators and industry groups opposed the increase, warning it could affect customer incentives and market competitiveness.
Licensed sportsbooks in North Carolina will face a higher tax rate from 1 July.
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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 sports betting handle rose 5% year on year to $718.2 million in September, reportedly reaching its highest level in six months.
Sanford city councillor Charles Taylor, the Republican candidate for North Carolina House District 51, owns a property reportedly housing an illegal video gambling room with 22 slot machines, The Assembly reported. Taylor told the outlet he rents out the property and did not list it on his 2025 economic interest statement because the purchase closed on the final day of the year.