Football season has kicked off with a bang, bringing not just excitement to fans but a big boost to North Carolina’s tax revenue.
In September, sports wagering taxes brought in $12,611,330, marking a massive 107.6% increase compared to the previous month.
This figure makes September the second-best month since sports betting became legal in the state.
Though sports wagering has only been legal for seven months, it’s already proving to be a significant source of revenue.
The best month for the state so far was April, but September was not far behind.
The gross wagering revenue—the total money received by sports betting operators after paying out winnings—is subject to an 18% tax, which is how the state gets its share.
Since sports betting started in North Carolina, the state has been raking in an average of $371,621 per day.
In total, the state has collected $75,810,688 in tax revenue over 204 days.
During the first few months, sports betting companies offered various incentives to attract players, leading to an early surge in betting activity.
However, the numbers remain strong as the novelty period has worn off.
For some perspective, here’s a look at the monthly tax revenues so far: March brought in $11,969,318 in just 21 days, followed by April with $18,945,301.
May saw a drop to $11,354,462, and the summer months were a bit slower, with $7,254,407 in June and $7,600,687 in both July and August.
September’s massive increase brought some renewed energy into the industry as football season kicked off.
Bettors in North Carolina wagered 50.7% more in September than they did in August and won 50.3% more as well.
The total amount wagered exceeded $575 million, with over $501 million paid out in winnings.
Promotional revenue also saw a big jump, rising from $13.1 million in August to $37 million in September, compared to a massive $202 million when betting first started.
So, what happens with all this tax money? The state has a few priorities. First, $2 million is set aside annually for the Department of Health and Human Services to fund programs that educate people about gambling addiction and provide treatment.
Another $1 million is given each year to North Carolina Amateur Sports, which aims to create more youth sports opportunities.
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In addition to these two programs, $300,000 is given annually to 13 public colleges and universities to support their athletic departments.
Another $1 million goes to the N.C. Youth Outdoor Engagement Commission, which offers grants for youth outdoor programs.
After these distributions, the remaining funds are split in a few different ways. Some of the money goes to cover the state Lottery Commission and Department of Revenue’s expenses for administering the law.
Then, 20% of the remaining funds go to public college athletic departments, 30% to a fund that attracts major sporting events to North Carolina, and 50% goes straight into the state’s General Fund, which supports various public services.
Eliot Pierce is a dedicated writer for ChiefsFocus.com, covering local crime and finance news. With a keen eye for detail and a passion for storytelling, Eliot aims to provide his readers with clear and insightful analysis, helping them navigate the complexities of their financial lives while staying informed about important local events. His commitment to delivering accurate and engaging content makes him a valuable resource for the community.
