Lawmakers considering raising taxes on sports betting operators

May 15, 2026 - 20:36

State budget negotiators have reportedly discussed increasing the tax rate on sports betting operators as a way to bring in more revenue for North Carolina. According to sources familiar with the closed-door talks, lawmakers are considering raising the percentage that companies must pay on their profits. The current tax structure, which was set when mobile sports betting launched earlier this year, may be seen as too generous to the industry now that the market is up and running.

The discussions come as state leaders look for additional funds to support various programs without raising taxes on individual citizens. Sports betting has proven to be a popular and profitable venture in the state, with operators reporting strong handle numbers since legalization. By adjusting the tax rate, officials could capture a larger share of that revenue for public use.

Critics of the potential increase argue that higher taxes could hurt the industry's growth and drive bettors to unregulated offshore sites. Supporters, however, note that other states with mature sports betting markets impose significantly higher rates. The final decision will depend on ongoing budget negotiations, with both sides expected to present their cases before any legislation is finalized.