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North Carolina lawmakers weighing gambling tax hike

Legal Writer

Publish Date: May 18, 2026

Fact checked by: Matt Moreno

Key Points

Report states that legislators are considering raising tax on sports wagering revenue and instituting a tax on lottery ticket sales.
Proposal to elevate sports betting tax cleared North Carolina Senate in 2025 but failed in the state House of Representatives.
Measure is likely to face staunch opposition from sportsbook licensees, which could curtail its progress.

Local and state governments have increasingly looked to gambling taxes as a way to create additional revenue, with the North Carolina state legislature among that crowd. A new report from Jack Hagel, Brian Murphy, and Caroline Yaffa of WRAL claims that lawmakers in Raleigh are weighing whether to elevate existing gaming taxes and introduce new taxes on gaming for the second consecutive year.

While no formal proposal has yet taken shape, the framework of a possible bill could resemble a piece of legislation that cleared the North Carolina Senate in 2025. Such a bill may fail for the second consecutive year, though, due to industry opposition.

Seth Trimble #7 of the North Carolina Tar Heels brings the ball down the court during the second half of a basketball game against the Syracuse Orange at Dean E. Smith Center on February 02, 2026 in Chapel Hill, North Carolina.

(Photo by David Jensen/Getty Images)

Report states gaming tax hike is part of internal budget discussions

The reporting of Hagel, Murphy, and Yaffa cites “people familiar with budget negotiations” in the North Carolina capitol regarding possible changes to the state’s gaming laws. The article clarifies that “no decisions have been made” and it is “unclear…whether lawmakers would support the proposals.” The possibilities consist of three components.

Instituting a new tax on lottery ticket sales
Levying a per-wager tax on bets at licensed sportsbooks
Raising the current 18% tax on licensed sportsbooks’ adjusted revenue

A proposal could include any or multiple of those ideas. If increasing the tax rate on sportsbooks’ revenue is part of future legislation, it would be the second consecutive year that leaders in Raleigh debated the idea.

Sports wagering tax hike encountered stiff opposition in 2025

The North Carolina Senate passed a bill that would have raised the current tax on sportsbook licensees’ revenue to 30%. However, the House version of the bill did not include any rise in that tax rate.

The two chambers were unable to reach a compromise on the matter, and the legislation failed. Lawmakers have reason to believe a similar outcome is possible in 2026.

The institution of any tax hike or new tax on sports wagering in North Carolina is likely to draw the ire of companies operating in the state. Groups like the Sports Betting Alliance would probably get involved as they did in 2025, trying to sway legislators to vote against any bill that would amplify taxation.

That will undoubtedly be the case regardless of how substantial that amplification proves to be. The article states that the sources claim the proposal being discussed internally would raise the tax rate to between 20% and 30%.

North Carolina leaders are far from the only lawmakers in the U.S. who have considered using gaming taxes to balance budgets.

Gaming taxes on the rise across the United States

In 2026, Louisiana elevated its tax rate for sports wagering revenue. Maryland and New Jersey did the same in 2025.

Illinois raised the rate in 2024, then added a per-wager tax in 2025. Proposals of tax increases saw debates in Colorado, Massachusetts, Michigan, Ohio, and Wyoming in 2025 but failed to gain necessary support.

In all cases, supporters of the measures cited growing budgetary needs and the desire to avoid increases in income or property taxes to meet those needs. More of these bills have failed than succeeded, but in North Carolina, the second time might be the charm.

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