North Carolina launched sports betting during the second week of March. The fiscal year ended in July, but the numbers the state put up in just four months are astounding.
For the fiscal year ending July 1, North Carolina collected over $50 million in fees and taxes from legalized sports betting during the fiscal year. Despite launching only in mid-March and excluding June’s tax receipts, more than $1.8 billion was wagered in North Carolina through May 31, including free and promotional bets.
Operators and top sportsbooks generated over $234 million in revenue, subject to an 18% state tax, resulting in nearly $42 million in tax revenue, and paid $9 million in licensing fees.
Where Did All The Tax Money Go In North Carolina?
The distribution of tax revenue from sports betting is a little different than in other states. Colleges and universities receive a lot of funding from what is generated. Of the nearly $42 million in taxes collected, here’s where the money went:
- $2,150.26 for administrative expenses to the Department of Revenue
- $2 million to the Department of Health and Human Services
- $1 million each to North Carolina Amateur Sports and the Youth Outdoor Engagement Commission
- Nearly $11 million to UNC System athletic departments (except NC State and UNC)
- Over $10 million to the Major Events, Games, and Attractions Fund
- Nearly $17 million to the General Fund
It’s quite a haul for (roughly) four months of betting.
The 13 state universities receiving money include Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, NC A&T State University, NC Central University, UNC Asheville, UNC Charlotte, UNC Greensboro, UNC Pembroke, UNC Wilmington, Western Carolina University, and Winston-Salem State University.
The General Assembly estimated it would send over $26 million of sports betting proceeds to the UNC System next year. If they reach that number, the 13 schools would receive at least 2 million dollars each.
June Promotional Numbers Lower, But a Bounceback Expected
The state collected more than $7 million in taxes for sports betting in June, which will be accounted for in the current fiscal year. Figures for July should be released soon.
Despite promotional bonuses and credits accounting for nearly 15% of North Carolina’s $2.23 billion betting handle since launch (equivalent to almost $330 million), the reported $16.5 million in June marked a significant decline of 46.8% compared to the $30.9 million given to bettors in May.
The June amount represented a total handle of a little more than 4% and just over 8% of the nearly $203 million in bonuses and credits offered during the March launch.
The reduced promotional spending might indicate that digital sportsbooks are conserving resources for the upcoming NFL and college football seasons. This fall will be the first time North Carolina bettors can legally wager on their favorite local teams.
So, we’ll keep our eyes on the sports betting scene in North Carolina to see if the numbers jump again, once football begins. If history is any indication, the Tar Heel State should experience a bounce back. We’ll keep you posted.
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