North Carolina public universities have received $17.3 million in tax dollars from sports betting taxes, representing 20% of the $98.6 million in total tax revenue collected from the new tax between March and Nov of 2024.
According to state law, of the tax revenue collected, 20% is required to be distributed evenly among 13 state universities to support the collegiate athletic departments. Between April and Sept of 2024, $1.32 million was transferred to each of the 13 UNC system institutions eligible for funding. The universities use these tax dollars to fund field upgrades, indoor practice complexes, sports medicine facilities, and beyond.
“Sports wagering companies are proud to play by the rules and pay a reasonable tax to responsibly serve North Carolina customers,” said Pat Ryan, spokesman for the Sports Betting Alliance (SBA), in a press release. “Millions of tax dollars generated by the industry are already benefitting the state’s public universities and will continue to do so in the years to come.”
North Carolina has the 11th highest tax rate on sports betting at 18%. In fiscal year 2024, which ended in June, athletic departments received over $800,000 after expecting only around $300,000. Projections for fiscal year 2025 are over $2 million.
“It’s a wonderful thing for us,” said Mike Oblinger, athletic director at UNC Wilmington told Fox Wilmington. “Anytime you can have additional revenue streams – whether you’re enhancing revenue streams or developing new ones – it’s obviously very important to what we’re trying to do here. It’s one of those situations where it’s difficult to forecast what this year will look like, what next year will look like down the road.”
Oblinger indicated that an upgrade to Brooks Field, including a new dugout, new turf, and new outfield walls, was being planned. Upgrades to the tennis courts and sports medicine facility, thanks to the additional tax revenue, are now possible as well.
Another example: During a Nov. 13 meeting of the UNC Board of Governors, a plan was approved to fund a new 85,000 sq ft practice facility at Appalachian State University with revenue from the sports betting tax.
The UNC System institutions that receive sports wagering tax revenue are: Appalachian State University, East Carolina University, Elizabeth City State University, Fayetteville State University, North Carolina A&T State University, North Carolina Central University, UNC Asheville, UNC Charlotte, UNC Greensboro, UNC Pembroke, UNC Wilmington, Western Carolina University, and Winston-Salem State University.
In September, the commission approved requirements and provided guidance to licensed interactive sports wagering operators.
The commission has issued a memorandum outlining the steps an operator must take in order to obtain a “Place of Public Accommodation Certificate of Compliance,” which must be obtained from the commission before operating such a facility, Ryan Carter, PIO for the NC Lottery Commission, confirmed to the Carolina Journal. Under current law, in-person sports wagering is legal, and operators have been provided with a straightforward process for opening such facilities.
The commission has also adopted rules concerning wagering facilities and in-person betting in order to protect the public.