(The Center Square) – Gross wagering revenue at an 18% tax rate brought the state $11,969,318 in March, the North Carolina State Lottery Commission says.
Bettors won more than $590 million, and it wasn’t even a full month.
Legal online gambling opened March 11, just in time for the Tobacco Road spectacle known as the ACC Tournament, and the event that fuels college athletics departments nationwide, the NCAA Tournament. March Madness included the Cinderella run of North Carolina State to the men’s and women’s Final Fours, and three teams in the same area code – State, Duke and Carolina – making it to the Elite Eight of the men’s event.
The state commission’s figures indicate bettors likely tagged along as well as the fans.
Gross wagering revenue is the total of amounts received by interactive sports wagering operators from sports wagers as authorized under state law, less the amounts paid as winnings before any deductions for expenses, fees or taxes. It’s the sum multiplied by 18% that yields money for state coffers.
Five things, per Session Law 2023-42, can happen with the proceeds. There’s $2 million annually to the Department of Health and Human Services for gambling addiction education and treatment programs; and there’s $1 million annually to the North Carolina Amateur Sports to expand youth sports opportunities.
Also annually, a third element is $300,000 to each of 13 state public school collegiate athletic departments. Fourth is $1 million annually to the N.C. Youth Outdoor Engagement Commission, which awards grants.
Finally, there are certain reimbursements to the state Lottery Commission and Department of Revenue for expenses incurred to implement and administer the new law. After that, it’s 20% to the 13 public collegiate athletic departments; 30% to a new fund to attract major events, games and investments; and 50% to the state’s General Fund.
Of note on the help to collegiate athletics programs, the language of the bill says “to support collegiate athletic departments.” One thing it can’t be used for is name, image and likeness money to athletes.
Times of the year, as seen in other states considered both more heavily collegiate or more heavily professional, can impact a consistent revenue stream from gambling. For example, there’s March Madness in the spring and the NFL season in the fall.
The nearly $12 million for 20 days would be a pace for $18 million monthly, and a 12-month take of about $216 million. A legislative fiscal analysis estimated the state’s 18% betting tax will generate $64.4 million the first fiscal year, with other estimates ranging from $47 million after three years to $126 million in year one.
The collegiate athletics department recipients 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 other two institutions in the UNC System are the UNC School of the Arts, which doesn’t play intercollegiate athletics, and a high school, the North Carolina School of Science and Mathematics.