North Carolina’s Senate advanced a $32.6bn budget proposal that would raise the sports betting tax rate from 18% to 36%. Senate budget writers estimate the increase could generate about $133m over two fiscal years, with $56m each allocated to UNC-Chapel Hill and NC State if enacted.
The proposal would increase operators’ tax rate and direct new sports betting tax revenue to two universities.
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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.
Lawmakers in New York and North Carolina proposed changes to sports betting rules, according to reports. New York Assemblyman Robert Carroll introduced a bill for a $5,000 daily wagering cap, while North Carolina legislation would raise the tax rate from 18% to 36%. The New York proposal also includes deposit limits and advertising restrictions.
Ohio Governor Mike DeWine proposed raising the state’s sports betting tax from 20% to 40% in the 2026-27 budget. He said the increase could raise $100 million to $130 million for a fund supporting professional sports facilities and youth sports, with allocations made by a group appointed by the governor and legislature if lawmakers approve the measure. Sports Betting Alliance president Jeremy Kudon warned that higher taxes could prompt operators to cut costs.
North Carolina's $34bn budget, signed by Governor Josh Stein in July, includes a 6% tax on prediction market operators' net trading fee revenue, citing WFAE. The tax takes effect in January and is expected to raise about $1m in the 2026-27 fiscal year. The measure adds to debate over election-related contracts on platforms such as Kalshi and Polymarket.
According to, citing WFAE, North Carolina's new spending plan imposes a 6% levy on the net trading fee revenue of prediction market operators. The measure takes effect in January.
Nevada authorities argued in a court filing that Kalshi’s acceptance of a North Carolina revenue tax acknowledges states’ authority over prediction markets. The filing forms part of Nevada’s legal dispute with Kalshi.