North Carolina Banks $131.3 Million in Taxes in First Year of Sports Betting
It didn’t take long for North Carolinians to validate the state’s legislative efforts to legalize sports betting, as evidenced by a remarkable $131.3 million generated in gambling tax revenue during its inaugural year.
Remarkable Financial Performance
The response to sports betting in North Carolina has exceeded the most optimistic projections. Initially, it was believed that it would take up to five years for the state to surpass $100 million in revenue; however, in reality, this milestone was achieved within just one year of operation. Since its official launch on March 11, 2024, over $6.6 billion has been wagered by residents, yielding more than $729.3 million in gross wagering revenue distributed among eight licensed operators.
- Revenue Breakdown: A substantial portion of this total revenue, approximately $500 million, arose from promotional bets aimed at incentivizing North Carolina’s sizeable population of 11 million to engage in their first wagering experience.
Peak Revenue Months
North Carolina’s highest revenue months were notably November, December, and January, propelled by the excitement surrounding college football, as well as professional competitions from the NBA, NHL, and NFL, despite the Carolina Panthers’ disappointing season.
Government Funding and Community Impact
The influx of tax revenue has allowed the state to allocate funds toward various initiatives, including support for athletic programs at universities within the University of North Carolina system, promotion of amateur sports programs, and education on gambling addiction.
Sterl Carpenter, the Lottery’s Chief Business Development Officer, commented on the year’s performance, stating, "It was a very successful year in my opinion," while affirming that "things went extremely well." State Commissioner Cari Boyce shared this sentiment, expressing optimism about the results.
Comparative State Performance
While North Carolina’s performance has been impressive, it still has a distance to travel to match states like New York, which reported a staggering $2.5 billion in betting handle in January alone. For context, North Carolina residents wagered over $74 million in January, a significant increase from $35 million in December.
The announcement of North Carolina’s substantial tax revenue may not sit well with sports betting advocates in neighboring Georgia. Despite overlapping populations, Georgia’s legislative efforts to advance a sports betting bill stalled due to political challenges, preventing a vote in the state House last month.
A Positive Outlook
The first year of sports betting in North Carolina has been nothing short of exceptional. The additional $131.3 million in tax revenue stands to positively impact the community through enhanced funding for various initiatives. As the market evolves, stakeholders in the gambling industry should continue to monitor North Carolina’s progress as a case study for future legislative considerations in other states.
As the industry continues to flourish, North Carolina serves as a compelling example of how strategic initiatives can yield significant public and economic benefits.
