North Carolina Considers Doubling Sports Betting Tax

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00:00So tax rates, you know, this has been a percolating story throughout the year, not quite as big as these prediction markets.

00:06By the way, don't stop getting emails from these people with prediction markets about this stuff.

00:10You're getting them. I'm getting them now, too, by the way. I'll show you one.

00:13Let's go on North Carolina here. Do you think that there is a chance that this state ends up hiking their sports betting tax rate?

00:20It certainly seems like it's in the cards.

00:22There's certainly a decent chance that it gets hiked because, you know, it has already passed the Senate in the Senate's proposed budget.

00:30They take it from 18 percent to almost double that.

00:35And, you know, that's a significant amount for these sports books.

00:40But we haven't seen the House proposal.

00:42We haven't seen, you know, any indication that they're the appetites there.

00:47But, you know, if the Senate passed it so easily, the appetite might be there in the House.

00:51Now, what is happening is, of course, the sports books are sending, you know, notices to their users to say, hey, reach out to the lawmakers.

00:59Tell them you don't want this because this is going to lead to worse odds and fewer promos and the like.

01:04And so that's not great for the user to see that.

01:08And then Grover Norquist, the president of Americans for Tax Reform, has weighed in and said this is not a good policy.

01:16You shouldn't do this.

01:18So we'll see.

01:19This is by far the furthest one of these tax hikes has gotten this year, even though we, to your point, have been talking at length about them.

01:26You know, up in Ohio, Governor Mike DeWine said, let's double our tax rate from 20 percent to 40 percent.

01:32Lawmakers said, no, let's not do that.

01:34We did that two years ago to go from 10 percent to 20 percent.

01:38And that was premature.

01:39So let's not go even further.

01:41Similarly, in Maryland, Governor Wes Moore said, let's double our tax rate from 15 to 30 percent.

01:46And his proposed budget lawmakers again said, nope, let's not do that.

01:50So it's been, you know, certainly a topic of the year in terms of the sports betting policy in Louisiana.

02:00A bill was recently introduced to also raise taxes, nearly doubling again.

02:05And both this North Carolina one and the Louisiana one would be kind of helping the university athletic departments in the state.

02:13So there is at least some good reason to do that, I suppose.

02:16But, yeah, to your question of is this possible, it is.

02:20It has passed the Senate.

02:21Now we just have to see what happens in the House.