Gross wagering revenue at an 18% tax rate brought the state more than $11.9 million in March, the North Carolina State Lottery Commission says.
Bettors won more than $590 million, and it wasn’t even a full month.
Legal online gambling opened March 11, just in time for the ACC Tournament and the NCAA Tournament. March Madness included the Cinderella run of North Carolina State to the men’s and women’s Final Fours, and three teams in the same area code — State, Duke and Carolina — making it to the Sweet 16 of the men’s event.
Gross wagering revenue is the total received by interactive sports wagering operators from bets as authorized under state law, minus the amounts paid as winnings before any deductions for expenses, fees or taxes. That sum multiplied by 18% yields money for state coffers.
Under state law, $2 million annually from that revenue will go to the Department of Health and Human Services for gambling addiction education and treatment programs; $1 million annually will go to the North Carolina Amateur Sports to expand youth sports opportunities; $300,000 will go to each of 13 state public school collegiate athletic departments; and $1 million will go to the N.C. Youth Outdoor Engagement Commission, which awards grants.
Finally, there are certain reimbursements to the state Lottery Commission and Department of Revenue for expenses incurred to implement and administer the new law. After that, 20% of any remaining revenue goes to the 13 public collegiate athletic departments; 30% to a new fund to attract major events, games and investments; and 50% to the state’s General Fund.
Of note on the help to collegiate athletics programs, the language of the bill says “to support collegiate athletic departments.” One thing it can’t be used for is name, image and likeness money to athletes.
The nearly $12 million for 20 days would be a pace for $18 million monthly, and a 12-month take of about $216 million. A legislative fiscal analysis estimated the state’s 18% betting tax will generate $64.4 million the first fiscal year, but other estimates range widely, from $47 million over three years to $126 million in just year one.
