North Carolina legislators are considering an increase in the state’s sports betting tax to finance education at the University of North Carolina and North Carolina State University. This measure, similar to a previous attempt that didn’t pass the House, aligns with the finalizations of the fiscal year 2027 budget. If the bill is signed, the operator tax rate will rise from 18% to 23% starting July 1. Additionally, a recent bill requires sportsbooks to report bettors with annual winnings of $2,000 or more.
In This News
Expanded Educational Funding
The budget deal aims to extend the allocation of funds from sports betting taxes to not only UNC and NC State but also Appalachian State, Charlotte, and East Carolina. Previously, only 13 universities benefited, but the new framework could see five schools receiving up to $5.8 million annually—a notable shift from the earlier $3.9 million distributed among the existing institutions. This expansion was central to the Senate’s proposed 2025 budget increase that had fallen through earlier.
Potential Prediction Market Tax
North Carolina is also contemplating a 6% tax on prediction markets, targeting operators’ net trading fees. This approach parallels efforts in states like Kentucky, where similar attempts led to legal challenges from entities such as Kalshi and the CFTC. Whether this tax will face similar opposition in North Carolina remains uncertain.
Operator Tax Rate Still in Flux
While negotiators have settled on a 23% tax rate, it still awaits formal approval to be enacted with the new fiscal year. The discussions initially considered rates as high as 50%, but the final figure represents a middle ground achieved during legislative negotiations. Sen. Jim Burgin, originally advocating for the higher rate, has confirmed the compromise. Now the measure requires Governor Josh Stein’s signature before proceeding. The board is expected to finalize and vote on the tax rate increase by the close of Q2.
Marcus Chen brings a quantitative approach to poker strategy and sports betting analysis. With a background in data analytics and over eight years covering professional poker circuits, his articles combine statistical insights with practical advice for serious players looking to sharpen their edge at the table.
