North Carolina lawmakers approve higher sports betting tax and new reporting requirements

North Carolina’s Senate has backed Senate Bill 595, which would raise the tax rate on online sportsbooks from 18 to 23 per cent and require licensed operators to report customers who win more than US$ 2.000. For PSPs and operators in high-risk betting, that is the usual two-part headache: higher cost on the front end, more reporting on the back end.

1. The North Carolina Senate voted 27-18 in favour of the package. The bill still needs House approval before it can go to Governor Josh Stein.
2. Under the proposal, the tax rate on online sports betting operators would increase from 18 to 23 per cent. If enacted, sportsbooks would then have to decide whether to absorb the extra cost or pass some of it through via promotions, pricing, or product changes.
3. The bill would also require licensed sportsbooks to report customers who win more than US$ 2.000 from betting. The stated aim is to improve compliance and curb underreported gambling income.
4. Industry representatives say the higher tax rate could lead sportsbooks to scale back promotions and offer less competitive odds as they adjust to the added cost. Some have warned that this would make the market less attractive and could push players toward offshore platforms.
5. North Carolina is not the first state to move in this direction. The text notes that several states have raised sports betting taxes, and that in Illinois the tax rise led operators including BetMGM, Hard Rock and Rush Street Interactive to revise their strategies, with some introducing minimum bet requirements.