Betting Tax To Double as North Carolina Plans College Basketball Overhaul

Some changes might be on the horizon for our best sports betting sites operating in the Tar Heel State.

The tax on North Carolina sports betting operators is set to double as part of a budget proposal that would overhaul the state’s college sports revenue model. 

The proposal from North Carolina Senate Republicans would require the University of North Carolina (UNC) and North Carolina State basketball teams to play more in-state games. It would also increase the amount of funding received by UNC System schools and allow UNC and North Carolina athletic departments to receive revenue for the first time. 

The two-year budget plan was released on Monday, and given the large Republican majority in the state Senate, it is expected to be passed later this week. 

Top bracket

Sports betting was legalized in the Tar Heel State in March last year, and by the end of March 2025, North Carolina sports betting apps had paid over $135 million in state taxes. The state’s latest sports betting revenue marked a complete year since the legalization and set its highest sports wagering handle to date. 

Under the budget, the current tax rate of 18% would increase to 36%. This would place the state in the top bracket of sports betting taxation states, level with Pennsylvania sports betting and behind only New York sports betting, New Hampshire sports betting, Delaware sports betting, and Illinois sports betting. 

The proposal would allocate the first 17% of sports betting taxation revenue to the 13 UNC System schools, each receiving between $500,000 and $1.5 million. Another 20% of the revenue would be split with those same schools before UNC, NC State, and the North Carolina Major Events, Games, and Attractions Fund are each allocated 10%. 

All remaining revenue will go to the General Fund. 

Spreading the benefits

As part of the proposal, NC State and UNC would be required to play at least three regular-season or exhibition games against each UNC System school at the NCAA Division II level and two against each school at the Division 1 level. 

The plan is designed to spread the benefits of sports betting revenue more effectively.

"It's our feeling that the success of the sports wagering program itself is something that has inured to the benefit of many of the campuses, and we wanted to extend it to other campuses," said Senate leader Phil Berger.

Lawmakers have proposed three other bills using sports wagering tax to fund various projects, including tax deductions for National Guard members, stipends for high school coaches, and more funding for gambling addiction prevention services.

As of Monday, the Sports Betting Alliance, which includes BetMGM, Fanatics, and FanDuel, all of which operate in the Tar Heel State, has yet to comment on the proposal.