North Carolina lawmakers are considering doubling the tax rate on sports betting in the state, which would have a significant impact on the industry. Currently, sports betting operators in North Carolina pay a tax rate of 8%, but a new proposal would increase this rate to 16%. This proposal has raised concerns among industry stakeholders, who argue that such a steep tax hike would make it difficult for operators to turn a profit and compete with other states.
The push to increase the tax rate on sports betting comes as North Carolina looks to pass legislation authorizing online sports betting in the state. While online sports betting has not yet been approved, lawmakers are considering its legalization and are looking at ways to maximize revenue from the industry. However, industry experts warn that doubling the tax rate could have unintended consequences, including driving operators out of the state or forcing them to pass on the cost to consumers.
If the proposal to double the tax rate on sports betting is approved, North Carolina would have one of the highest tax rates on sports betting in the country. Currently, states like Pennsylvania and Rhode Island have tax rates of 36% and 51% respectively, making North Carolina’s current rate of 8% relatively low by comparison. However, industry stakeholders argue that a tax rate of 16% would still be too high and could hinder the growth of the sports betting market in the state.
Overall, the proposal to double the tax rate on sports betting in North Carolina is sparking debate among lawmakers, industry stakeholders, and consumers. While increasing the tax rate could generate more revenue for the state, it could also have negative consequences for operators and consumers. As the debate continues, it remains to be seen whether North Carolina will move forward with this significant tax hike on sports betting.
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