RALEIGH, N.C. — North Carolina has quickly reaped significant financial gains from legalized sports betting, according to a report presented to the North Carolina State Lottery Commission. This commission oversees the regulation of sports betting activities in the state. Over the first full year of operations, which concluded on March 10, the state has reportedly amassed $131.3 million in tax revenue from sports wagering.
This figure comfortably exceeds the initial projections made by state legislative researchers during the legislative process. It was anticipated that tax revenues might reach $100 million annually within a five-year span. The state imposes an 18% tax rate on gross wagering revenue, which is the total betting revenue after winnings are paid out.
March 11, 2024, marked the start of online betting activities, with North Carolina becoming the 30th state to permit mobile sports betting, joining the District of Columbia. The substantial tax revenue is attributed to a large volume of betting, with reported wagers totaling over $6.8 billion in the first year, yielding $729.3 million in gross wagering revenue across the eight authorized operators.
Sterl Carpenter, the lottery’s chief business development officer, expressed satisfaction with the program’s first year, stating, “It was a very successful year in my opinion. Things went extremely well.” Commissioner Cari Boyce echoed this sentiment, stating they were encouraged by the results.
With North Carolina’s population of 11 million, the state has proven to be an attractive market for companies eager to provide interactive wagering services. Prior to this expansion, sports gambling was exclusively permitted at tribal casinos operated by two American Indian tribes in the state.
The new law permits registered residents to place bets on professional, college, and Olympic-style sports. Additionally, it opens the potential for future in-person wagering opportunities outside the tribal casinos. Of the revenues generated, nearly $500 million came from “promotional wagers,” which are incentives offered by companies to attract new customers once they have placed an initial bet. The highest betting activity occurred in November, December, and January, driven by major sports events such as football playoffs and professional basketball, hockey, and college sports.
The tax revenues support various initiatives, including funding for athletic departments within the University of North Carolina system, amateur sports programs, and efforts to educate and treat gambling addiction.