Sports bettors in North Carolina wagered over $659 million during the state’s first month of legal online sports wagering. The combined total comes from actual money wagers, $456,702,632, and promotional funds, $202,605,909, used by bettors. Eight online sportsbooks licensed in the state are providing special offers and promotional funds to new players signing up.
North Carolina legalized online sports wagering in June 2023 when Governor Roy Cooper signed House Bill 347 into law. Before legalizing online sports wagering, the state had only three casino locations that provided retail sports betting. Now bettors in the state can place a wager from their smartphone or computer.
North Carolina has three tribal casinos operating in the state:
- Tribal Casino Gaming Enterprise in Cherokee
- Catawba Two Kings Casino in Kings Mountain
- Harrah’s Cherokee Valley River in Murphy
The North Carolina State Lottery Commission released the first month’s online sports wagering report on Tuesday. The report compiles the sports wagering activity in March as submitted by the eight licensed interactive sports wagering operators. But the report isn’t for a full month. North Carolina online sports wagering started March 11.
After receiving over $659 million in wagers, sportsbooks paid out over $590 million to players as winning bets. The North Carolina State Lottery Commission said they will post a monthly report on sports betting activity in the state on a fiscal year basis. The monthly reports reflect the activity reported by sports wagering operators currently licensed to operate in the state.
After paying out winning bets, the state places an 18% tax rate on the Gross Wagering Revenue of each interactive sports wagering operator. The N.C. Department of Revenue is responsible for collecting tax revenues from each licensed operator.
For the first month of wagering in March, the state collected an estimated $11.8 million in taxes.
Revenue Leakage to Other States
In 2023, North Carolina Rep. Jason Saine, a Lincoln County Republican, raised concern about tax revenue “leakage” into Virginia and Tennessee which had already legalized online sports betting. Bettors were crossing state lines to place sports bets.
But the Commonwealth of Virginia waited three years to reach a record handle of $652 million in January 2024, while North Carolina reached $659 million in less than 30 days. Virginia has handled over $14 billion in bets and collected over $160 million in tax revenue since launching online sports wagering in 2021.
Where Does the Money Go?
The N.C. General Assembly has directed that the tax proceeds from gross sports wagering revenue will be allocated to benefit the state as follows:
- $2 million annually to the Department of Health and Human Services for gambling addiction education and treatment programs.
- $1 million annually to North Carolina Amateur Sports to expand opportunities in youth sports.
- Up to $300,000 annually to collegiate athletic departments at 13 state universities, including Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, N.C. Agricultural & Technical State University, N.C. Central University, University of North Carolina at Asheville, University of North Carolina at Charlotte, University of North Carolina at Greensboro, University of North Carolina at Pembroke, University of North Carolina at Wilmington, Western Carolina University, and Winston-Salem State University.
- $1 million annually to the North Carolina Youth Outdoor Engagement Commission for grants of up to $5,000 per team or group, per county, to help cover the cost of travel to in-state or out-of-state sporting events and grants of up to $25,000 to attract amateur state, regional, area, and national sporting events, tournaments, and programs.
Certain reimbursements to the N.C. State Lottery Commission and the N.C. Department of Revenue for expenses incurred to implement and administer the new law.
Of any remaining proceeds:
- 20% will be distributed evenly among the 13 state universities to support collegiate athletic departments.
- 30% to a new North Carolina Major Events, Games, and Attractions Fund to foster job creation and investment in the state.
- 50% to the state’s General Fund.
