North Carolina reaps $131.3 million in taxes from sports betting boom

North Carolina legalized sports betting on March 11, 2024, allowing registered customers within the state to wager on various sports. As a result, over $6.8 billion in bets were placed, leading to $729.3 million in gross wagering revenue for the licensed operators. The state's total expected tax revenue from this new gambling sector stands at $131.3 million for its first year of operation. This revenue significantly exceeds initial projections from state legislative researchers, who estimated that tax revenues would reach $100 million annually within five years. Before the new law took effect, North Carolina only allowed sports gambling at three tribal casinos supported by two American Indian tribes. The change has positioned North Carolina as the 30th state to offer mobile sports betting, enhancing its appeal to interactive wagering companies. By permitting mobile wagering on smartphones and computers, the state aims to capture a more extensive market, capitalizing on specific periods of high betting activity, particularly during college and professional football playoffs, as well as the NCAA basketball tournament. According to reports from the North Carolina State Lottery Commission, approximately $500 million in sports wagering revenues were classified as promotional bets aimed at attracting new customers making their initial wagers. Notably, significant revenues were accrued in the months of November, December, and January. Commissioner Cari Boyce expressed optimism for the future of sports betting, indicating that the results were encouraging for the state. The generated tax revenues are earmarked for several important initiatives. These include funding for athletic departments across various University of North Carolina system schools, supporting amateur sports, and enhancing education and treatment programs targeted at gambling addiction. Overall, the early financial gains from sports betting are viewed as a strong start for legislative efforts to regulate and profit from gambling in North Carolina.