Proposed North Carolina Bill Would Double Sports Betting Tax Rate
North Carolina is the latest state considering legislation that would result in a substantial increase in the tax rate on sports wagering revenue.
Under the proposed bill, SB 257, the tax rate in the Tar Heel State would double from 18 percent to 36 percent. Since the launch of legal sports wagering last year, the activity has generated approximately $135 million in tax revenue to the state. On a monthly basis, the windfall has resulted in an additional $10.4 million available to state coffers.
Last year, Illinois passed a new progressive tax policy that imposed duties of up to 40 percent to select operators. The tax applies to operators that generate more than $200 million in sports wagering revenues per month. Illinois operators must pay a minimum of 20 percent based on the sliding scale. A new bill in Massachusetts seeks to raise the tax from 20 percent to 51 percent, a rate that would tie New York and New Hampshire for the highest in the nation. Two others, Maryland and New Jersey, also have pending legislation with increased tax rates on sports betting.
In North Carolina, a percentage of the new revenues would be earmarked to the state’s largest public universities, the University of North Carolina and N.C. State. The bill allocates a projected $24.4 million (10 percent) to the athletic departments of each university, according to a fiscal note attached to the bill. The disbursement is aimed at assisting the schools with a proposed revenue-sharing plan with Division I student athletes. If signed into law, the tax increase will take effect on October 1.
USMNT’s McKennie Named In Italian Gambling Investigation
U.S. Men’s National Team midfielder Weston McKennie is among more than a dozen soccer players under investigation by Italian authorities in a widespread illegal betting probe, multiple European outlets reported.
McKennie and the others reportedly surfaced based on new evidence provided to Milan prosecutors in a case involving two prominent players. Italy midfielder Sandro Tonali received a 10-month suspension in October 2023 for betting on matches in the previous season. Tonali, who signed with Newcastle United of the English Premier League, subsequently received an additional two-month suspension from England’s Football Association.
Another Italian player, Nicolo Fagioli, received a seven-month suspension from the Italian Football Federation after he admitted to betting on a series of matches. Fagioli and McKennie were teammates on Juventus, the famed Serie A club. All told, nine other current or former Serie A have been named in the investigation, according to the reports.
As of April 17, there is no evidence that any of the new players bet on soccer matches. The players, according to the reports, are under investigation for participating in online poker games and betting on other sports through illegal platforms. Besides McKennie, Angel Di Maria, Nicolo Zaniolo and Leandro Paredes were named in a report from Italian media outlet La Repubblica. Di Maria scored in the 2022 World Cup final when Argentina defeated France for the nation’s third-ever world title.
McKennie, who joined Juventus in 2021, has seven goals in 109 appearances with the Italian club. The U.S. is one of three nations that will host the 2026 FIFA World Cup next summer.
Alberta Sports Betting Bill Advances
An effort to legalize sports betting in Alberta gained traction this week.
Authored by Minister Dale Nally, the bill advanced past second reading during April 16’s session. The bill, the iGaming Alberta Act, is patterned after a framework adopted in Ontario. Nally intended for market launch in 2024, but the bill has been hampered by multiple delays.
The measure, Bill 48, will move to the Committee of the Whole, a committee within the broader Members of the Legislative Assembly (MLA). There, the committee is expected to discuss additional amendments on the complexion of an Alberta online gaming market. The timing of when the bill will be taken up is still unclear.
JMP Securities estimated last year that the Alberta online gaming market could generate as much as $700 million in revenue annually. Alberta is home to the NHL’s Edmonton Oilers, the defending Western Conference champions. As of April 17, the Oilers had odds of +950 to win the Stanley Cup, good for fifth among all teams at FanDuel.
Ex-Baylor Official Receives Show-Cause For Impermissible DFS Wagers
A former Baylor official is being sanctioned for making a series of wagers on daily fantasy sports (DFS) in violation of NCAA bylaws.
Sam Hancock, a former director of resource development at Baylor, has received a two-year show-cause by the NCAA for the infractions. Hancock admitted to placing DFS wagers and sports bets before his employment began at the university. Hancock also placed approximately 2,950 wagers through September 2024 during his six-year employment at the school.
Overall, Hancock placed wagers on three DFS platforms totaling $45,979. Some of the wagers placed by Hancock included bets on Baylor athletic events. Hancock, according to the NCAA, violated Bylaw 10.3, which pertains to sports wagering activities among non-athletics department staff members. Those individuals are not allowed to “knowingly participate in sports wagering activities concerning intercollegiate, amateur or professional athletics competition,” the bylaw reads.
A show-cause is an administrative punishment imposed by the NCAA for a major rules infraction. The penalty can also be transferred to another institution that considers Hancock for employment. As part of the punishment, Hancock is temporarily barred from participating in any collegiate athletics activity and will be required to take part in gambling counseling.
