Half-billion dollars won in North Carolina’s second-best month – Washington Examiner
In September, North Carolina saw a significant increase in tax proceeds from sports wagering, earning approximately $12.6 million, a 107.6% rise from August. This marked the state’s second-best month for tax revenue since legalizing sports betting, following a strong April. The state collects 18% of the gross wagering revenue, which is calculated after deducting winnings paid to bettors. Over the first 204 days of wagering, the average daily gain for the state is about $371,621, with total revenues reaching nearly $75.8 million. This surge is partly attributed to the excitement of the football season, indicating a positive trend for state finances as sports betting becomes more established.
Half-billion dollars won in North Carolina’s second-best month
(The Center Square) – Hello, football! And welcome, from the North Carolina bottom line for tax proceeds.
To no surprise, the gridiron’s first full month of action led to increased activity – and money for state coffers – through sports wagering. Estimated tax proceeds in September were $12,611,330, a 107.6% increase from the previous month.
Though only the seventh month of legal sports wagering, the total was second best to April.
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 204 days, North Carolina is averaging a gain of $371,621 per day on the $75,810,688 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; and $7,600,687 in August. The new fiscal year started July 1.
Bettors gambled 50.7% more and won 50.3% more than the previous month. Total gambled exceeded $575 million and total won topped $501 million.
Promotional wagering revenue, $202 million the first month, in September rose to $37 million from $13.1 million in August.
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.
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