The North Carolina State Lottery Commission, tasked with licensing and regulating sports betting and horse racing in the Tar Heel State, posted its second wagering activity report since the sector was legalized on March 11, 2024.
The report reflects the April sports betting activity as submitted by the eight licensed online sports betting operators. The final revenue amounts to the N.C. Department of Revenue can be subjected to adjustments.
April saw bettors in North Carolina wager $648,934,226 on sports, including $569,283,605 in paid wagering revenue and $79,650,621 in promo wagering revenue.
From March 11 through April 30, bettors wagered $1,025,986,237 on sports events through mobile and desktop devices. When the promo wagering revenue, or the amount of promo funds used by bettors, is added to the mix, the amount rises to $1,308,242,767.
The total amount paid in winnings for the two months is $1,129,152,275. Bettors won $52,348,331 less in April compared to the previous month when online sports wagering went live in the state. As for the amounts related to canceled wagers, they were $2,062,025 in March and $5,280,581 in April.
The Allocation of Tax Proceeds in North Carolina
The licensed online sports betting operators in North Carolina, among which are Betfair Interactive US, BETMGM, Penn Sports Interactive, and Underdog Wagering, have collected gross wagering revenue of $105,251,672 in April and $66,496,213 in March.
Online sports betting operators in North Carolina are subjected to an 18% tax rate on their Gross Wagering Revenue. The combined total for March and April stands at $171,747,885.
The tax proceeds from gross sports wagering revenue, or nearly $30.9 million for both months, will be allocated to several departments, commissions, and universities, as per the N.C. General Assembly rulings.
The Department of Health and Human Services will receive $2 million annually for supporting gambling addiction education and different treatment programs. To help broaden the opportunities in youth sports, $1 million will be directed to North Carolina Amateur Sports. The athletic departments of 13 state universities will benefit from up to $300,000 per year. Several other entities are also included in the list. The state’s General Fund will receive 50% of any remaining proceeds.
Before the sports betting legislation was enacted, North Carolina residents could place wagers only at three land-based casinos, operated by American Indian tribes. Although the state’s laws provide for in-person betting, horse race betting, and live horse betting, such gambling opportunities are currently not available.
The gambling regulator has confirmed two upcoming events on its official website – meetings of the Sports Betting Committee and the Lottery Commission, both scheduled for May 23, 2024.
