North Carolina Legislative Branches Disagree on Tax Increase for Sports Betting Revenue
Spinning the News:
Score Sweep: Sportsbook Tax battle rages on
By: Mike "The Punter" Savio06/05/2025 09:30 Sports Betting Battle Photo by DiscoA340, CC0, via Wikimedia Commons
The Skinny
- Congressions House and Senate have left sportsbook operators in suspense over tax hikes in the proposed budget
- The House holds back on any increase, while the Senate ambitiously doubles the current rate
- Both chambers push for increased funding for the UNC-system schools
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All Odds by Mike "The Punter" Saviohttps://x.com/g00sefactoryMike "The Punter" Savio## The Bigger Picture
Making Bank or Breaking Banks?- The federal government is staying mum on any tax hikes for sportsbooks- The Senate has rolled the dice on raising the tax rate to twice its original value- The House is playing it safe for now
Placing Bets on Funding
- The UNC-system schools are keeping their assets in the game, with both chambers looking to up the ante for increased funding
- If the Senate's tax increase materializes, an indirect win for the schools may be within reach, as increased state revenues might stack the deck in their favor
- However, there's no clear card showing that tax hikes will be earmarked specifically for the UNC schools, leaving their final take to the luck of the draw
The Odds
Betting Odds: Tax Rates- Federal: 0.25% handle excise tax (staying put for now)- State level (Illinois example): Per-wager tax of 25 cents (first 20 million bets) and 50 cents (thereafter), in addition to tiered GGR tax of 20–40%- State level (Arkansas example): 13% on the first $150 million in revenue, 20% on any revenue above that
Hanging the Joker: Illinois and the UNC-system
- There's no concrete evidence of earmarking increased sports betting taxes for the UNC system, leaving its fate to the unpredictable wheel of state funding distribution
- However, if Illinois' newly introduced per-wager tax generates a windfall, the schools might end up with a winning hand
The Final Showdown: A Look at the Numbers
| Jurisdiction | Current/Pending Tax Rate ||--------------|------------------------|| Federal | 0.25% handle excise tax[1] || Illinois | 25 cents per bet (first 20M), 50 cents thereafter; plus tiered GGR tax of 20–40%[4][5] || Arkansas | 13% on first $150M GGR, 20% above[2] |
Time to Collect: The Wrap-up
The House's reluctance to boost taxes for sportsbooks means it's back to the drawing board for the Senate, which is hitting the table with a doubled tax hike plan. If the gamble pays off, universities like those in the UNC system could see a windfall in the form of increased state revenues. But with no concrete earmarking for education at the federal level, the schools will be playing the waiting game to find out if their luck holds up.
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[1] "Federal Sports Betting Tax Rate Held Steady, No Changes in Budget", CasinoExpert.com, accessed June 06, 2025[2] "Arkansas Governor Signs Sports Betting Legislation into Law", SportsHandle.com, accessed June 06, 2025[3] "Illinois' New Sports Betting Tax Plan Stirs Debate", ChicagoTribune.com, accessed June 06, 2025[4] "Illinois Approves New Sports Betting Tax as Part of State Budget", YahooFinance.com, accessed June 06, 2025[5] "Illinois' New Sports Betting Budget: What You Need to Know", SportsBettingDime.com, accessed June 06, 2025
- Mike "The Punter" Savio's latest article, "Score Sweep: Sportsbook Tax battle rages on," discusses the ongoing debate in Congress about proposed tax hikes for sportsbooks, with the House holding back on any increase while the Senate looks to double the current rate.
- In addition to the sportsbook tax battle, Mike "The Punter" Savio provides insights into the UNC-system schools' efforts to secure increased funding, as both chambers of Congress consider upping the ante for their support.
- If the Senate's ambitious tax increase for sportsbooks materializes, it could indirectly benefit the UNC-system schools by increasing state revenues and possibly leading to additional funding for them.
- The outcome for the UNC-system schools, however, remains uncertain, as there is no clear indication that tax hikes will be earmarked specifically for education, leaving their final take to the luck of the draw.
