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North Carolina sportsbooks may soon see their operating tax doubled.
The change would generate an estimated $133 million in additional revenue over the next two years, according to Axios. The two biggest public universities, UNC and NC State, would receive $56 million each.
But the increase in taxes is almost certain to be passed down to consumers. In other words, great for the schools, bad for the bettors.
The Senate budget proposal that was put forward on Monday included the tax provision.
Currently, sportsbooks in North Carolina pay 18% of their gross revenue in tax. The incumbent Republicans want to double that to 36%.
That would place the Tar Heel State right behind some of the most taxed states in the country, including New York, which has the highest tax rate in the nation at 51% along with New Hampshire. Delaware and Pennsylvania follow right behind at 50%. On Illinois‘ sliding scale, FanDuel and DraftKings pay 40% as a result of their high revenues, while other sportsbooks pay proportionately less.
North Carolina collected roughly $131 million in taxes from sports betting in its first year, The Associated Press reported.
In its first year, 13 of the state's public schools received money from that tax — excluding UNC, N.C. State and the UNC School of the Arts.
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