North Carolina Lawmakers Considering Sports Betting Tax Increase

• According to a WRAL report, North Carolina lawmakers are considering increases to the state’s sports betting tax rate this budget season
• Additionally, a per-bet fee could also be approved for licensed state operators
• This is the second budget session in a row legislators have considered an increase to the state’s currently 18% sports betting tax rate

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For the second budget session in a row, North Carolina lawmakers are considering an increase to the state’s sports betting tax rate and new fees for licensed sports betting operators.

According to a WRAL report, legislators are considering including an increase to the 18% North Carolina sports betting tax rate, and an additional per-bet fee charge for licensed operators, in the state’s next budget.

It is the second year in a row North Carolina lawmakers have considered an increase to the state’s sports betting tax rate to help close a budget gap.

Another Year, Another Increase Discussion

The WRAL report cites anonymous sources in the North Carolina statehouse who say the budget may include a sports betting tax rate increase. Additionally, lawmakers are considering an additional tax to lottery sales and a potential per-bet fee for operators, similar to a fee-structure currently used in the Illinois sports betting market.

Sources in the WRAL report said the proposed tax rate increase could be anywhere from 20% to 30%.

During 2025 budget negotiations, North Carolina Senate members included an increase to the state’s sports betting tax rate to 36% in their approved budget, up from its current rate of 18%. The House of Representatives, however, did not advocate for an increase and it was ultimately not included in the state’s finalized budget document.

North Carolina currently has eight licensed online sports betting operators who pay an 18% tax rate on gross sports betting revenue. So far in fiscal year 2026, the licensed sports betting operators have contributed nearly $121.5 million in tax revenues to North Carolina, according to the North Carolina State Lottery Commission.

If the tax rate is increased to 36%, the state would have taken in more than $243 million in tax revenues during the same period.

Per-Bet Fee Being Considered

Included in the WRAL report is a potential consideration of a per-bet fee for licensed sports betting operators. Illinois is currently the only other state in the country with a per-bet model, which has raised the ire of the sports betting industry.

Gov. JB Pritzker (D) approved a budget in June 2025 that included a new per-bet fee for all licensed online sports betting operators. The per-bet fee went into effect on July 1, 2025, and resulted in more than $5.2 million in revenue during its first month of operation.

Companies are required to pay a $0.25 charge on the first 20,000,000 online sports bets taken in the state each year. The fee increases to $0.50 per bet for every single bet taken after the initial 20,000,000 bets.

Licensed operators in Illinois pushed back on the decision before ultimately implementing per-bet fees for customers using their online sports betting platforms. All 10 licensed operators in the state approved transaction fees for customers.

DraftKings, FanDuel, and Caesars Sportsbook began charging Illinois customers a per-bet fee of either $0.25 or $0.50 on Monday, Sept. 1, 2025. FanDuel currently charges users $0.50 per bet, Caesars Sportsbook charges users a fee of $0.25 per bet, while DraftKings charges users either $0.25 or $0.50 per bet.

Fanatics Sportsbook also charges $0.25 per-bet in the Prairie State.

Circa Sports requires a $10 minimum bet amount for Illinois sports betting customers, while ESPN BET requires a $1 bet minimum as well.

BetMGM, Hard Rock Bet, and BetRivers also instituted or upped their minimum bet amounts in the state. Hard Rock Bet instituted a $2 minimum bet amount for users, BetMGM instituted a $2.50 minimum bet amount, and BetRivers now requires a $1 minimum bet.

Bet365 charges $0.25 per bet, but not for bets more than $10.