- North Carolina has topped $60 million in sports betting tax revenue over six months
- The state is easily outpacing the original fiscal estimates for sports betting tax revenue
- Regulators are also gearing up for the state’s retail sports betting launch
North Carolina has outperformed nearly all sports betting tax revenue estimates during its first six months of operation.
During today’s North Carolina Lottery Commission meeting, Sterl Carpenter, deputy executive director of gaming compliance and sports betting, reported the state has taken in more than $62 million in sports betting tax revenue during its first six months of operation.
Originally, North Carolina’s approved sports betting legislation estimated a total of $36.1 million in sports betting tax revenue for the entirety of FY 25.
North Carolina Easily Outpacing Revenue Projections
North Carolina sports bettors have wagered more than $2.5 billion since the state launched on March 13, 2023. In the final few months of FY 24 (March 2024 through June 2024), the state took in $49,523,489 in sports betting tax revenue off of $275.1 million in gross gaming revenue. The state taxes gross gaming revenue at a rate of 18%.
So far, North Carolina is easily toppling all of the original sports betting fiscal estimates. Legislators included an original fiscal estimate for HB 347, which expected just $8.5 million in sports betting tax revenue for FY 24.
Through July and August, the first two months of FY 25, North Carolina has seen an additional $13.6 million in sports betting tax revenues. The original fiscal estimate believed the state would take in $53 million for the entire fiscal year.
Tax revenues from sports betting will likely explode over the course of the next several month, as the state enters into the lucrative football season where the majority of tax revenue comes in for operators and state coffers.
Additionally, a new form of sports betting will likely launch soon in the Tar Heel State.
In-Person Sports Betting on Its Way
The North Carolina Lottery Commission took the first step towards allowing the launch of in-person sports betting in the state. So far, only online sports betting has been live in North Carolina, with operators awaiting the green light to begin offering retail sports betting at licensed locations.
The commission today unanimously approved the necessary steps for operators to acquire their certificate’s of compliance to offer in-person sports betting.
Operators must meet with lottery commission staff, submit operations documents, undergo testing, receive lab certification, and pass an on-site inspection of their facility prior to launching retail sports betting.
There will be no universal launch date for retail sports betting, as the commission required for online sports betting. Each facility will be on their own to acquire the necessary certification of compliance and determine their own launch date, Carpenter revealed.
Eight facilities are eligible to host brick-and-mortar sportsbooks.
The PNC Arena in Raleigh, WakeMed Soccer Park in Cary, Bank of America Stadium and Spectrum Center in Charlotte, Charlotte Motor Speedway in Concord, North Wilkesboro Speedway, Sedgefield Country Club in Greensboro and Quail Hollow Country Club in Charlotte will be allowed to host sportsbooks at their locations.
In a surprising turn of events, North Carolina’s sports betting tax revenue has exceeded initial estimates, bringing in more money than anticipated. This unexpected windfall has left many experts scratching their heads as they try to understand the reasons behind this sudden increase in revenue.
When North Carolina first legalized sports betting, there were high hopes for the potential tax revenue that could be generated from this new industry. However, initial estimates were conservative, with many experts predicting only modest gains in tax revenue.
But as the months passed and sports betting became more popular among residents, it became clear that the actual revenue was far surpassing these early projections. The state government quickly realized that they had a potential goldmine on their hands and began to explore ways to capitalize on this unexpected windfall.
One of the main reasons behind North Carolina’s sports betting tax revenue exceeding initial estimates is the sheer popularity of sports betting in the state. With a passionate fan base for college basketball and football, as well as professional sports teams like the Carolina Panthers and Charlotte Hornets, residents have eagerly embraced the opportunity to bet on their favorite teams and players.
Additionally, the convenience of online sports betting platforms has made it easier than ever for North Carolinians to place bets from the comfort of their own homes. This accessibility has led to a surge in betting activity, resulting in higher tax revenue for the state.
Furthermore, the legalization of sports betting has also had a positive impact on the economy, creating new jobs and opportunities for businesses in the state. With more people participating in sports betting, there has been an increase in demand for services related to the industry, such as sports bars and restaurants that cater to fans looking to watch games and place bets.
Overall, North Carolina’s sports betting tax revenue exceeding initial estimates is a testament to the growing popularity of sports betting in the state. As more residents continue to embrace this new form of entertainment, it is likely that tax revenue will continue to increase, providing a much-needed boost to the state’s economy.
