(The Center Square) – Only twice before has the state’s take been lower for a calendar month, yet sports wagering in North Carolina arguably continues to be a revenue win.
Estimated tax proceeds for March were $6,865,265, the State Lottery Commission said Monday in a report. Only August ($6 million) and December ($6.4 million) have been lower since bettors could begin legally playing on March 11, 2024.
However, far be it from trading March Madness for March Sadness in assessment.
Consider for this fiscal year the state has already gained $85.8 million in nine full months. That’s a pace to end June 30 with more than $114.4 million.
Or, consider the pace per day since enactment – $350,662. Most quarter-million dollar a day businesses are generally considered good.
Prior to implementation, a legislative fiscal analysis estimated the state’s 18% betting tax would generate $64.4 million. The top end of trade industry estimates was $126 million in year one.
The gross wagering revenue – 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 – is multiplied by 18% to give the state its take.
Total gambled exceeded $685 million in March and total won by bettors topped $643 million. The gross wagering revenue was $38,140,361. Promotional wagering revenue was $17.9 million.
The monthly takes since beginning last year have been $11,969,318 in 21 days of March; $18,945,301 in April; $11,354,462 in May; $7,254,407 in June; $7,600,687 in July; $6,075,183 in August; $12,611,330 in September; $8,758,757 in October; $14,057,587 in November; $6,429,218 in December; $13,415,424 in January; and $10,018,604 in February.
The new fiscal year began July 1.
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.
