NC tax revenue from sports betting eclipses $40 million since March launch

Sports bettors in North Carolina wagered more than $525 million in May, the lowest amount bet in the first three months of legalized mobile sports betting in the state

Operators collected $63 million in gross wagering revenue, according to the North Carolina State Lottery Commission. That figure is taxed at 18% in the state, meaning the North Carolina will receive more than $11 million in taxes.

In all, operators have collected more than $234.8 million in gross wagering revenue — and will pay more than $42 million in taxes since the March 11 launch date in the state.

The operators have different ways to calculate how much money they have made, but the lottery commission simply adds the revenue from paid wagers ($494 million in May) and promotional wagers ($30.9 million), then subtracts the amount of canceled or voided wagers ($3.8 million) and the amounts paid as winnings ($458.6 million) to figure gross wagering revenue ($63 million) for the month.

Eight sports betting companies are licensed to take mobile sports bets in North Carolina. The commission does not release revenue figures for any of the individual betting companies or apps.

In May, a slower time on the sporting calendar without NFL or NCAA football or college basketball, people in North Carolina bet $494.6 million in paid wagers and another $30.9 million in promotional or free wagers.

In March, bettors wagered nearly $660 million, buoyed by more than $200 million in promotional or free bets. In April, those figures were $648 million with $79 million in promotional bets.

The athletic departments at UNC System colleges, outside of UNC and NC State, are one of the biggest beneficiaries of the tax revenue from sports betting. Each school will receive $300,000 plus 20% tax revenue left after the first $8.4 million in tax revenue, which is allocated to other purposes.

As of the end of May, each of the 13 college athletic departments stands to receive more than $820,000.

Lawmakers are still considering an adjustment to the state’s tax code to allow bettors to claim or deduct losses against any taxable sports betting winnings.

Since launch, people in North Carolina have wagered more than $1.520 billion in real money wagers and been paid out $1.587 billion in winnings. Some of those winnings come from the $313 million in promotional bets that have been made in the state.