TLDR North Carolina lawmakers raised the online sports betting tax rate from 18% to 23% Bettors placed over $561 million in wagers in May 2026 alone — the ninth straight month above $500 million Since launch in March 2024, the state has collected over $299 million in tax revenue The Sports Betting Alliance warned the hike penalizes regulated operators who already contribute hundreds of millions in taxes North Carolina now sits above New Jersey, Massachusetts, and Ohio in tax rates, but well below New York’s 51%
North Carolina has raised its online sports betting tax rate from 18% to 23%, making it the first rate change since the market launched in March 2024.
Lawmakers approved the 5% increase as betting activity in the state continues to grow. In May 2026, bettors placed over $561 million in wagers. That was the ninth month in a row that total bets exceeded half a billion dollars.
Since legalization, North Carolina bettors have placed more than $15 billion in legal wagers. Gross operator revenue has reached $1.6 billion, generating over $299 million in tax revenue for the state.
A more aggressive proposal to raise the rate to 50% was also on the table, but lawmakers settled on 23%.
Where the Money Goes
Tax revenue from sports betting is directed to several areas. These include gambling addiction treatment, youth sports programs, the Major Events, Games and Attractions Fund, and athletics departments at 13 University of North Carolina System schools.
Funds also flow into the general fund, which supports education, public safety, transportation, and health care.
House Speaker Destin Hall called the policy a success. “It’s been a tremendously successful policy in this state,” he said. “A lot of people apparently like to do that sort of thing for one reason or another.”