July 2025 saw North Carolina’s lowest sports betting revenue since the start of legal betting in March 2024.
The report released by the North Carolina State Lottery Commission shows wagering totaling $370.4 million statewide in July, with $344.6 million paid out in winnings. The state collected slightly over $4 million in taxes.
“July 2025 produced the lowest sports wagering tax revenue since betting launched in the state, driven by the sports calendar and favorable outcomes for bettors,” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “June through August are typically among the slowest months for wagering, since football and basketball, Americans’ favorite sports to bet on, are out of season. The NBA Finals usually end mid-June, and the NFL regular season doesn’t start until September.”
Wagering operators are taxed at 18% on their gross betting revenue after subtracting total payouts to winners.
“Sports wagering companies are taxed on their gross wagering revenue, essentially their profit after paying out winning bets. While total wagers in July 2025 ($370 million) exceeded those in July 2024 ($340 million), operators paid out $345 million in winnings this year compared to $295 million last year,” said Harris. “Consequently, since basketball and football were out of season, and bettors enjoyed a strong month, taxable gross wagering revenue fell to an all-time low.”
The state has collected over $65 million in sports betting tax revenue so far this year, compared to $105 million from March through the end of 2024.
Use of the tax proceeds are as follows:
- $1 million annually to North Carolina Amateur Sports to expand opportunities in youth sports
- Up to $300,000 annually to collegiate athletic departments at 13 state universities: Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, NC Agricultural & Technical State University, NC Central University, University of North Carolina at Asheville, University of North Carolina at Charlotte, University of North Carolina at Greensboro, University of North Carolina at Pembroke, University of North Carolina at Wilmington, Western Carolina University, and Winston-Salem State University
- $1 million annually to the North Carolina Youth Outdoor Engagement Commission for grants of up to $5,000 per team or group, per county, to help cover the cost of travel to in-state or out-of-state sporting events and grants of up to $25,000 to attract amateur state, regional, area, and national sporting events, tournaments, and programs
- Certain reimbursements to the NC State Lottery Commission and the NC Department of Revenue for expenses incurred to implement and administer the new law
Of any remaining proceeds:
- 20% will be distributed evenly among the 13 state universities to support collegiate athletic departments;
- 30% will go to a new North Carolina Major Events, Games, and Attractions Fund to foster job creation and investment in the state;
- and 50% will go to the state’s General Fund.
Approximately $2 million goes to the NC Department of Health and Human Services (NCDHHS) to fund gambling addiction education and treatment programs.