North Carolina Governor Josh Stein has signed Senate Bill 257 into law, officially approving the state’s $34bn annual budget. The legislation increases the tax rate for online sports betting operators from 18 percent to 23 percent and establishes a new 6 percent levy for prediction market platforms.
Legislative Approval and Fund Distribution
The budget measure cleared the state legislature last week, securing an 88-21 vote in the House of Representatives and a 35-10 vote in the Senate. Revenue generated from the adjusted betting taxes will be distributed to several state initiatives. The Major Events, Games, and Attractions Fund is allocated up to $30m per year, while North Carolina State University and the University of North Carolina at Chapel Hill have been designated as new revenue recipients.
This marks the first adjustment to the state’s sports betting tax structure since the market launched in March 2024. Lawmakers previously attempted to double the operator tax rate last year, but that proposal did not advance through the legislative process.