North Carolina Governor Enacts Budget Raising Sports Betting Tax to 23%, Introduces Prediction Market Levy

North Carolina Governor Josh Stein has officially signed Senate Bill 257 into law, approving the state's comprehensive $34 billion budget. This legislative action introduces notable changes to the iGaming landscape, primarily by increasing the tax rate for online sports betting and establishing a new levy on prediction market activities.

A central component of the new budget is the elevation of the tax imposed on online sports betting operators. This rate will climb from its previous 18 percent to a new 23 percent. Additionally, the legislation breaks new ground by implementing a 6 percent tax specifically targeting prediction market operators within the state.

Prior to the Governor's signature, the budget had secured substantial support from both chambers of the state legislature. The House of Representatives passed the measure with an 88-21 vote, while the Senate followed suit with a 35-10 vote last week.

The revised budget also reallocates a portion of the generated revenue. The Major Events, Games, and Attractions Fund is now set to receive up to $30 million annually. Significantly, the University of North Carolina at Chapel Hill and North Carolina State University have been added as new recipients of these proceeds.

This marks the initial adjustment to the online sports betting tax rate since the market officially launched in North Carolina in March 2024. A previous attempt to double the sports betting tax rate had been proposed last year but ultimately failed to advance through the legislative process.