(The Center Square) – Estimated tax proceeds from sports wagering this fiscal year have eclipsed North Carolina’s entire first full year.
And there’s two months to go.
April’s take of more than $11.6 million – the fourth lowest of the 10 months so far – pushed the total to $121.4 million. The inaugural full year was $116.5 million, with a daily average of better than $319,000.
This year’s daily average ticked just before $400,000 following a strong six months run that brought in better than $84 million – or 69% of this year’s proceeds.
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 $594.4 million in April and total won by bettors topped $544 million. The gross wagering revenue was $64,464,939 factoring in adjustments. Promotional revenue was $18 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.
