(The Center Square) – Millions continue to be reaped on North Carolina’s newest source of state revenue, even though the betting public scaled back October compared to the splash of football returning in September.
Estimated tax proceeds were $8,758,757, a 30.5% drop from the second-best ($12,611,330) of what is now eight months of legalized sports wagering. April remains the best month for state coffers; October is only better than June, July and August.
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.
Through the first 235 days, North Carolina is averaging a gain of $359,869 per day on the $84,569,445 total. In context, many operators offered incentives early in what could also be described as a novelty, or honeymoon, period.
Still, the monthly takes 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; $7,600,687 in August; and $12,611,330 in September. The new fiscal year started July 1.
Total gambled exceeded $612 million and total won topped $560 million in October.
Promotional wagering revenue, $202 million the first month, was down to $22.9 million from September’s $37 million.
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.
