Updated
Updated · Carolina Journal · Jul 10
North Carolina Lifts Sports Betting Tax to 23%, Adds 6% Prediction Market Levy
Updated
Updated · Carolina Journal · Jul 10

North Carolina Lifts Sports Betting Tax to 23%, Adds 6% Prediction Market Levy

3 articles · Updated · Carolina Journal · Jul 10

Summary

  • $34 billion budget signed by Gov. Josh Stein raises North Carolina’s sports-betting tax to 23% from 18% and creates a 6% tax on prediction-market operators.
  • 2026-27 sports-wagering tax revenue is projected at $206 million, up from $161.2 million under prior law, with the General Fund taking the biggest gain at $126.1 million.
  • Public university athletics gets a larger share: NC State and UNC-Chapel Hill are added at $3 million each, while nine other UNC-system programs rise to about $3 million apiece.
  • Prediction markets are expected to generate about $1 million in 2026-27, but lawmakers and gambling critics objected to folding the policy into the budget and taxing those platforms below sportsbooks.
  • A separate bettor tax change lets itemizers deduct up to $2,000 in gambling losses, a move Fiscal Research says will cut General Fund revenue by roughly $19.7 million to $23 million a year.

Insights

Is North Carolina's new budget creating an unfair advantage for prediction markets over traditional sports betting?
Will funding college sports with gambling taxes create more problems than it solves for universities?