North Carolina Sports Betting Impact Being Undervalued

• Most estimates for North Carolina sports betting have the state making anywhere from $35-90 million per year in five years.
• LegalSportsBetting estimates a larger projected market, with North Carolina bringing in a total of $125 million before 2025 ends.

CHARLOTTE – Projections and estimations can be massive in range, especially when looking at sportsbook revenue and tax profits. More often than not, legislators tend to overinflate the tax benefits of sports betting to expedite the passing of a bill.

In the case of North Carolina, we found the opposite to be true.

The NC online sports betting launch is the focus of the legal sports betting industry and how much North Carolina stands to make from sports betting is impacted by their targeted launch date. Projected for a March 11 launch, North Carolina will see a lot of March Madness betting action from the start.

Per financial analysts in the General Assembly, there is a $70 million projection on NC tax revenue from sports betting – which should hit in five years’ time.

How Much Does North Carolina Stand To Make From Sports Betting?

• Spectrum Gaming reported that by the fifth year, sportsbooks in NC could make about $500 million in revenue. Taxed accordingly, this would be over $90 million.
• Meanwhile, an NC Education Lottery commissioned study predicted that NC mobile sportsbook app tax revenues would total around $35 million annually in a mature market.
• Another analysis stated the “privilege tax” could produce almost $18 million in FY 2025. For 2028, some estimates believe it’s closer to $50 million.

Per LegalSportsBetting estimates, the amount of money bet on sports in NC is being massively underrepresented. By comparing to the Pennsylvania, Ohio, Arizona, and Virginia sports betting markets, North Carolina should handle around $9.5 billion by the end of 2025.

At an 8% hold rate, this would be $720 million that sportsbooks keep from losing wagers. On an 18% tax, North Carolina would generate $129.6 million in tax benefits in under two years. For 2026 at a full market, we expect NC sportsbooks to see $6.6 billion in total bets placed and give the state anywhere from $90-100 million per year after.

Revenue Impact Of North Carolina Sportsbook Apps

No matter how large or small the market, North Carolina will come out ahead. In fact, they will take in a $1 million licensing fee paid every five years by each of NC’s double-digit permitted online sportsbooks.

The tax rate (raised from 14% to 18%) on sportsbooks benefits the state, not allowing for sportsbooks to deduct sportsbook bonuses and promos given out.

Also, North Carolina will tax sports bettors on their winnings. Even winning a $1000 bet on the Super Bowl requires $47.50 to be paid back to the state. With this, expect another $50-60 million generated for the NC government from the players alone.

Where Does North Carolina Sports Betting Tax Revenue Go?

The approved law broke down how North Carolina will use sports betting revenue.

• Responsible gaming ($2 million)
• Youth sports ($1 million)
• North Carolina Youth Outdoor Engagement Commission grants ($1 million)
• College athletic departments ($300,000 each)
• Remaining proceeds

After the first set of responsibilities, the remaining proceeds are divided.

• General Fund (50%)
• North Carolina Major Events, Games and Attractions Fund (30%)
• Distributed equally to universities for athletic department support (20%)

News tags: NC Education Lottery | North Carolina | Spectrum Gaming