North Carolina Sportsbooks Face Increase to 23% in Gambling Tax
North Carolina sportsbooks face an increase in business tax following an agreement by lawmakers.
The new tax on sports betting sites will increase from 18% to 23% starting this year.
While the tax rise is bad news for the state’s legal sportsbooks, it could have been worse. Lawmakers proposed a 36% gambling tax rate last year, with some seeking a 50% rate.
At a Glance:
- Tax on sportsbook operators to rise from 18% to 23%
- Agreement had been reached to raise taxes to between 20% and 30%
- Tax still lower than 36% in Pennsylvania, higher than Ohio (20%)
- North Carolina has had regulated sports betting since 2024
Sports betting tax rise falls short of 50% sought
In North Carolina, online sportsbooks have been legal since 2023, with the first mobile apps going live a year later. NC also has retail sports betting at tribal casinos and sports stadiums.
North Carolina lawmakers agreed to an 18% tax rate on operators’ profits when sports betting went live. An agreement was made this month to raise it to 20-30%, before settling on 23%.
The North Carolina Senate had sought to raise the rate to 36% last year, but the move failed. Sen. Jim Burgin said in an interview with WRAL that he had wanted a rise to 50%. That would have meant operators in the Tar Heel State would have faced the highest sports betting tax in the United States.
North Carolina has a well-established mobile betting industry. Many of the country’s top operators, including DraftKings, offer legal mobile sportsbooks in the state.
How NC sports betting tax compares: A snapshot
- New York: 51%
- New Hampshire: 51%
- Rhode Island: 51%
- Pennsylvania: 36%
- Illinois: 20-40%
- North Carolina: 23%
- Massachusetts: 20%
- Ohio: 20%
- New Jersey: 19.75%
FanDuel hits back as tax rise looms
One of North Carolina’s biggest sportsbooks, FanDuel, hit out at the confirmed tax rate.
In a letter sent to customers earlier this month, it said: "Legal sports betting is generating real revenue for collegiate athletic departments across the state.
“A tax hike would threaten that funding and hit fans like me directly.”
Despite the pushback from operators, they continue to do well in North Carolina. Sportsbooks like Caesars, DraftKings, and FanDuel generated over $6.8 billion in revenue from July 2025 to May 2026.
Estimated tax proceeds were $133 million, according to North Carolina State Lottery Commission numbers. Those are set to rise as the new tax hike kicks in.
Tribal casinos in NC continue to thrive
A rise in sportsbook tax in North Carolina is unlikely to deter new casinos in the state. Tribal casinos are permitted to house retail sportsbooks, which are also subject to the tax regime.
The Lumbee Tribe of North Carolina agreed to a vote in April to decide on the construction of a new casino. It would join the Eastern Band of Cherokee and the Catawba Indian Nation in constructing a new tribal casino. All three offer retail sports betting after the state changed the law in 2023.
