North Carolina Banks $131.3 Million in Taxes in First Year of Sports Betting

It didn’t take North Carolinians long to justify state lawmakers’ initiatives to legalize sports betting, after the state raised a whopping $131.3 million in gambling tax revenue in the first 12 months.

Exceeding all initial expectations, even when most optimists believed it would take five years before the state surpassed the $100 million mark; a year on and the Tar Heel state’s inaugural year of operations smashed that figure out of the park.

Since its legal launch on March 11, 2024, North Carolinians have wagered over $6.6 billion in bets, generating over $729.3 million in gross wagering revenue for the eight licensed operators.

As witnessed in other states that have legalized sports betting, a significant portion of total wagering revenue. Around $500 million came from promotional wagers designed to entice some of North Carolina’s 11 million-strong population to take their first bet.

By far, North Carolina’s key revenue-driven months were November, December, and January, fuelled by college football, the NBA and NHL, as well as the NFL – despite the Carolina Panther’s underwhelming season.

As a result of the newly boosted state tax coffers, the revenue generated has already been earmarked for initiatives, including athletic programs at University of North Carolina schools, amateur sports programs, and education on gambling addiction.

Reflecting on its unprecedented debut, the lottery’s chief business development officer, Sterl Carpenter, stated, “It was a very successful year in my opinion,” adding that “things went extremely well.”

State commissioner Cari Boyce also echoed this statement, saying, “I would say that we are very encouraged by the results.”

Despite the impressive year, North Carolina has some way to go to match states like New York, which posted a record-breaking $2.5 billion betting handle in January alone. Although North Carolinians still wagered over $74 million in January, up from $35 million in December.

The news of North Carolina’s tax windfall is unlikely to go down well with sports betting advocates in neighboring Georgia. Despite sharing a similar population size, lawmakers failed to progress its own sports betting bill after political headwinds meant it was unable to advance to a vote in the state House last month.

Nevertheless, North Carolina’s impressive first year of operations has been remarkable. Its subsequent $131.3 million in additional taxes may also make a positive impact on people’s lives thanks to increased funding for community initiatives.