North Carolina Approves Sports Betting Tax Increase
David Genge Published 03/07/2026
As part of the 2027 state budget, North Carolina lawmakers are including a tax rate increase on sports betting revenue. The previous tax rate of 18% is being hiked up to 23%. Sports betting in North Carolina has generated more than $299 million in tax revenue since the state launched legal and regulated wagering on sports in March 2024.
Tax revenue collected from sports betting goes toward funding gambling addiction treatment and education. Revenue collected is also directed into youth sports across the state, a Major Events, Games and Attractions Fund, athletics departments at UNC System universities, and the state’s general fund. That fund is used to pay for such areas as education, public safety, transportation, and health care.
North Carolina is making changes to the allocation of sports betting tax revenue
The uptick in sports betting tax revenue collected isn't the only proposed change in the 2027 budget. There would also be alterations to the distribution of funds among the state's universities.
North Carolina and North Carolina State, the two largest post-secondary schools in the Tar Heel State, are now being included among the recipients of this tax revenue. North Carolina officials indicated that the school was facing a $15 million deficit and that the funds would help alleviate these financial issues.
“As we await further information about the budget, we are grateful for the General Assembly’s leadership in providing support for our collegiate athletic programs through potential additional sports wagering revenue,” the school stated in a release provided to The News & Observer.
North Carolina and North Carolina State join Tier I of the sports betting tax distribution model. Appalachian State, Charlotte, and East Carolina are also in this category. These schools could receive up to $5.8 million annually. Class I institutions may receive up to 2.2% annually.
Class II schools may receive up to 19.5% annually, or up to $2.9 million, per university. Schools categorized as Class III may receive 5.7% annually, or up to $2.5 million.
Sports betting has gone better than expected in North Carolina
The launching of legal and regulated online sports betting in North Carolina has proven to be a boon to the state's economy. And it's only growing in volume with each passing month.
During 2025, from January to May, bettors wagered $3 billion online on sports across the state. Over the same time period in 2026, that amount has seen an increase to $3.2 billion.
“It’s been a tremendously successful policy in this state,” House Speaker Destin Hall said. “A lot of people apparently like to do that sort of thing for one reason or another.”
Had the 23% tax rate been in place since the March 2024 launch of sports betting, the state would have realized an additional $83 million in tax revenue.
The budget bill goes to the Governor's desk
Following a contentious and often heated round of debate, the 2027 budget was given a vote of approval by the state's General Assembly earlier this week. It is now sitting on the desk of Governor Josh Stein, who can sign it into law. He has 10 days to decide whether to sign the bill or to veto it.
The budget also includes a provision allowing tax-paying sports bettors in the state to deduct gambling losses. This would be done on their state income tax returns. North Carolina is currently among the 10 states that do not allow gamblers to deduct their losses.
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