North Carolina Raises Sports Betting Tax to 23%

In May, it was rumored that North Carolina might be considering raising the sports betting tax from 18%, and now that's come to fruition. 

According to Brian Murphy of WRAL, the tax is increasing to 23%. 

"I reported previously that North Carolina was going to raise tax on sports betting operators to 23%. NC Sen. Jim Burgin confirmed that number today. Said he wanted 50%. Senate previously put 36% in last year's proposal," Murphy wrote on X. This comes after Sen. Jim Burgin, who confirmed the news to Murphy, wanted it to be 50%.

This is the second straight year North Carolina has considered an increase. Last year, they considered an increase to 36%. This also comes at a time when the market is growing. In May, North Carolina bettors wagered more than $561 in May and the total 2026 handle is about 6% higher than 2025. 

Legal online sports betting has been live since 2024.

Higher Taxes Could Impact Sportsbooks and Bettors

While operators do take on some of the cost when taxes go up, this can also impact the players, such as lower promos, more fees, and more. It now begs the question of whether more increases could come later. 

The Sports Betting Alliance had a campaign against this hike. "When states raise taxes, the costs get passed down to customers – directly hitting your wallet. It punishes NC sports fans who play by the rules and pushes more people toward illegal offshore sites with no consumer protections," the page reads. 

More States Are Raising Sports Betting Taxes

North Carolina isn't the first and certainly isn't the last to increase sports betting taxes. 

Here are some of the recent changes: 

• Maryland: Raised from 15% to 20%
• Louisiana: Raised from 15% to 21.5%
• New Jersey: Raised from 13% to 19.25%
• Illinois: Raised from 15% to a tier system of 20% to 40% and also added a per-wager fee of 25 cents on the first 20 million online bets and 50 cents after those.