(The Center Square) – In April, North Carolina’s gross wagering revenue exceeded $105 million, marking an increase of over $38 million since the initial month of legalized sports gambling.
March included just the final 21 days after the much-anticipated launch during the ACC men’s basketball tournament. Selection Sunday for the NCAA Tournament followed, with N.C. State making a historic streak, winning five consecutive games to claim the conference title and eventually reaching the Final Four in early April.
The culmination of the NHL regular season and Major League Baseball’s first full month were key events in April.
The gross wagering revenue, taxed at 18%, resulted in $18,945,301 going to the state from $105,251,672. Combined with $11,969,318 from the first month, the state had accrued $30,914,619 by May.
Bettors won over $538 million.
Gross wagering revenue is the total amount received by interactive sports wagering operators from sports bets as permitted by state law, minus the payouts for winnings before any deductions for expenses, fees, or taxes. The state gains funds from this amount by applying an 18% tax rate.
According to Session Law 2023-42, five uses for the proceeds include: $2 million annually to the Department of Health and Human Services for gambling addiction education and treatment, and $1 million annually to North Carolina Amateur Sports to enhance youth sports opportunities.
Also annually, $300,000 goes to each of 13 state public school collegiate athletic departments. Additionally, $1 million annually is allocated to the N.C. Youth Outdoor Engagement Commission, which provides grants.
Finally, there are reimbursements to the state Lottery Commission and Department of Revenue for implementing and administering the new law. After that, the remaining funds are distributed with 20% to the 13 public collegiate athletic departments, 30% to a fund for attracting major events and investments, and 50% to the state’s General Fund.
Notably, the bill specifies that funding for collegiate athletic departments cannot be used for name, image, and likeness payments to athletes.
Seasonal events, like March Madness in the spring and the NFL season in the fall, can influence the consistency of gambling revenue, as seen in other states with either a collegiate or professional focus.
The first two months projected a 12-month total of $185.5 million, with an estimated $61.8 million by the end of the fiscal year on June 30. Legislative fiscal analysis estimated the state’s 18% betting tax would generate $64.4 million in the first fiscal year.
Other predictions ranged from generating $47 million after three years to $126 million in the first year.
The collegiate athletic departments benefiting are Appalachian State, East Carolina, Elizabeth City State, Fayetteville State, N.C. A&T, N.C. Central, UNC Asheville, UNC Charlotte, UNC Greensboro, UNC Pembroke, UNC Wilmington, Western Carolina, and Winston-Salem State. The two other UNC System institutions are the UNC School of the Arts, which doesn’t participate in intercollegiate athletics, and the North Carolina School of Science and Mathematics, a high school.
