That total includes $4.9 billion in paid wagers and more than $450,000 in free and promotional bets. Despite these lofty figures, tax revenue remains far below what many initially expected.
A Booming Market, Yet Modest Returns
The state collected just over $100 million in taxes from sports betting operators, which were directed toward various initiatives, including university athletic programs, the Department of Health and Human Services, youth sports, and a major events fund.
However, the way NC sports betting revenue is structured has led to a lower-than-anticipated financial impact on public programs.
While North Carolina imposes an 18% tax on gross gaming revenue, that figure is misleading. The tax applies only to what remains after winnings and other expenses are deducted, resulting in an effective yield of less than 2% of net proceeds.
December’s betting reportshowed a total of $613 million in bets placed, but only $6.4 million ultimately went toward public programs. Between July and December, net proceeds were just 1.8%.
State projections initially forecasted less than $10 million in tax revenue for the fiscal year ending June 2024, followed by $53 million for the 2025 fiscal year. However, the state has already surpassed $55 million in tax revenue for the current fiscal year, exceeding expectations.
University Athletics Reap Benefits, But Concerns Linger
One of the most tangible benefits of sports betting revenue has been its impact on North Carolina’s public universities. Under state law, 20% of tax proceeds are allocated to the athletic departments of 13 UNC system schools, excluding UNC-Chapel Hill and NC State.
Since sports betting’s launch, these institutions have received $17.3 million, funding crucial facility upgrades and operational improvements.
For example, UNC Wilmington is using its share of the revenue — $1.32 million per school between April and September 2024 — to upgrade Brooks Field with a new dugout, turf, and outfield walls.
Appalachian State University recently approved an 85,000-square-foot practice facility using sports betting funds. Winston-Salem State University is directing its portion toward improving its basketball venue, tennis courts, and fueling stations.
“Being able to spend the resources to upgrade facilities… is really important,”
said Winston-Salem State Athletic Director Etienne Thomas.
“You want to have the best facilities you can have.”
North Carolina A&T, the state’s largest HBCU, has used the funds to hire additional trainers, strength and conditioning coaches, nutritionists, and mental health experts to support its athletes.
However, as money flows into college athletics, concerns about problem gambling in North Carolina — especially among students — are rising. A National Council on Problem Gambling study found that nearly 6% of all college students suffer from gambling addiction, a figure that is growing.
Worse, suicide risk is five times higher among underage problem gamblers than any other peer group. Despite a $2 million annual appropriation for gambling law enforcement, there have been no reported citations for underage betting violations.
With sports betting continuing to expand, North Carolina must weigh the benefits of tax revenue against the potential risks it poses to young people and public welfare. The industry is booming, but whether it’s truly delivering on its promises remains up for debate.