After several states considered increasing the sports betting tax rates, two of the bigger ones took different paths.
Ohio recently dropped a plan to boost the state’s rate, while North Carolina appears to be moving forward with a hike.
As part of his new budget, Gov. Mike DeWine sought to increase the industry’s tax rate from 20% to 40%, but legislators recently stripped that from an amended version of the budget. The changed version was then passed by the House.
This would’ve been the second time Ohio doubled its sports betting tax rate. Lawmakers passed a previous increase favored by DeWine, from 10% to 20% in 2023. The governor saw the increase as a way to pay for stadium construction and youth sports in the Buckeye State.
“These sports gaming [groups] are extremely aggressive… they’re in your face all the time,” DeWine told the Ohio Capital Journal in February. “They’re getting Ohioans to lose massive amounts of money every year and it seems to me only just and fair that some of the stadiums be paid for by them or a portion of it.”
In North Carolina, the state senate put forward a new budget this week that calls for doubling the sports betting tax rate from 18% to 36%. Only New York (51%), New Hampshire (51%), and Delaware (50%) would have higher rates while the new rate would match that of Pennsylvania. Illinois has a sliding rate that taxes larger operators like DraftKings and FanDuel at 40%.
The move to raise rates in the Tar Heel State comes just over a year after legalized betting launched. The industry brought in $135 million through the end of March, surpassing initial expectations of about $100 million per year.
Some senators now believe increasing the rate could yield an additional $53.4 million more in the coming fiscal year (2025-26) and $79.8 million in 2026-27. In other North Carolina gaming news, one legislator recently filed a bill to protect poker players in his state from law enforcement when they get together for home games.
Photo courtesy of Shutterstock
