(The Center Square) – Sports wagering revenue for North Carolina, about to exceed $300 million on an 18% rate since launching March 11, 2024, is poised to go up with enactment of the now-343 days old two-year state budget.
Published reports say Rep. Donny Lambeth, a key budget writer in the House of Representatives, confirmed both chambers are in agreement on a figure more in the lower end of a range of 20% to 30%.
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.
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.
Respective General Assembly chamber leaders – Sen. Phil Berger, R-Rockingham, and Rep. Destin Hall, R-Caldwell – on May 12 jointly said the Senate and House of Representatives had resolved major differences. They described the ensuing weeks as a time to take care of details before presenting the negotiated budget.
The spending plan’s revenues are the axis upon which expenditures can be made. State law requires a balanced budget. The Office of State Budget and Management said last month the state’s general fund revenue over the fiscal biennium has increased to $71.1 billion, up $2.6 billion.
Legalized sports wagering has been better than projected and upping the percentage take for the state’s coffers is more luxury than need. Estimated tax proceeds this fiscal year have eclipsed North Carolina’s entire first full year with numbers from May yet to be released and June 30 the end of the year.
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.
Since launch, state revenue through April is $287,595,897.
Had the state been on a rate of 20% rather than 18%, state coffers would have $13.5 million more this year; would have had $12.9 million more in fiscal year 2025; and $5.5 million more in the brief three-plus months of fiscal year 2024.
If the state had been on a rate of 23% rather than 18%, state coffers would have $33.7 million more this year with two months to go; would have had $32.4 million more in fiscal year 2025; and $13.7 million more in the three-plus months of fiscal year 2024.
Thirty-two states and the District of Columbia offer legal online sports betting; Missouri on Dec. 1 was the most recent addition to the list.
The tax rates are as low as 6.75% in Iowa and Nevada to 51% in New York. Pennsylvania (36%), Massachusetts (20%), Nebraska (20%) and Ohio (20%) are also higher than North Carolina.
