In April, North Carolina’s gross wagering revenue reached $105 million, marking a significant increase of $38 million compared to the previous month. This surge was primarily due to the full 30-day month allowing for more betting activity.
The launch of legal sports gambling in March saw an initial boost during the NCAA Tournament and the end of the NHL regular season. N.C. State’s impressive run in the ACC men’s basketball tournament also contributed to the rising revenue.
The state benefits from an 18% tax rate on gross wagering revenue, resulting in a total of $18,945,301 in taxes collected from the $105,251,672 wagered. Bettors in North Carolina won over $538 million during this period.
Proceeds from the tax are allocated according to Session Law 2023-42, with funds going towards gambling addiction education, youth sports programs, collegiate athletics departments, and the N.C. Youth Outdoor Engagement Commission. A portion also goes towards reimbursing the state Lottery Commission and Department of Revenue for expenses related to implementing the new law.
Despite potential fluctuations in revenue throughout the year, such as during March Madness or the NFL season, North Carolina is on track to generate significant revenue from sports gambling. Legislative fiscal analysis estimates the state will generate $64.4 million in betting taxes during the first fiscal year, with varying estimates for future revenue.
The collegiate athletics departments at 13 state institutions stand to benefit from the tax revenue, with Appalachian State, East Carolina, and UNC Charlotte among the recipients. The funds are intended to support athletic programs and facilities, but cannot be used for name, image, and likeness payments to athletes.
Overall, North Carolina’s sports gambling industry is showing promising growth, with projections indicating substantial revenue potential for the state in the coming years.
