(The Center Square) – Two years of legal sports wagering are in the books for North Carolina, and state coffers are averaging gains of better than $364,000 per day.
February’s take was the lowest ($10.4 million) since last summer, yet still at a robust $373,232 per day. Eight months into the fiscal year, the $96,218,530 has been added in estimated tax proceeds.
The state Office of Budget and Management forecast the state to benefit by $74.9 million in fiscal year 2025 and $142 million in fiscal year 2026. The first full year was 55.7% higher.
For perspective on state revenue, the individual income tax is the state’s largest revenue source and its increase in fiscal year 2025 was more than $637 million. Sales and use tax generate an estimated $5 billion annually. The corporate income tax and franchise tax are other streams topping the sports wagering windfall.
The calculation for state coffers is 18% of the gross wagering revenue. That sum is the 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.
Total gambled exceeded $581.6 million in February and total won by bettors topped $535 million. The gross wagering revenue was $58,058,337 factoring in adjustments. Promotional revenue was $14.4 million.
The best months for the state’s total take are April 2024 ($18,945,301), November ($16,728,516), December ($14,672,613), January ($14,460,977) and October ($14,066,214).
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.
About 30% goes to help North Carolina attract major sporting events.
