CHARLOTTE — North Carolinians spent more than $7 billion betting on sports during the fiscal year that ended June 30, according to the N.C. State Lottery Commission, the governing body of legalized online sports gambling.
At $7.2 billion, online sports betting in fiscal 2026 surpassed fiscal 2025 by 15%, when wagers totaled $6.64 billion. North Carolina legalized online sports betting in June 2023; licensed online operators began accepting bets in March 2024.
Tax revenue from sports betting also increased during the just-completed fiscal year, with $143 million generated over the 12-month period spanning July 1, 2025 to June 30, 2026. That’s up 23% from fiscal 2025, when sports betting tax revenue was $116.6 million.
Until this month, when state legislators passed a new state budget after more than a year of delays, online sports betting tax revenue was allocated to various state agencies, including and departments as follows:
- $2 million for gambling awareness and treatment programs
- $1 million for youth sports
- $1 million for grants to youth travel sports teams and to attract amateur sports competition
- $300,000 each to UNC-affiliated athletic departments, except for UNC Chapel Hill and N.C. State, plus equal shares of 20% of any remaining proceeds
- 30% of remaining proceeds to a major events, games and attractions incentives fund
- 50% of remaining proceeds to the state’s general fund
The new budget taking effect this month increases the tax on gross wagering revenue to 23% from 18%. State government defines gross wagering revenue as all money bet minus paid winnings before deducting expenses, fees or taxes.
All of the programs listed above will still receive a portion of sports betting tax revenue but with the following changes:
- More money will go to university athletic departments
- UNC Chapel Hill and N.C. State will now be added as recipients for athletic department funding
- A new formula that fully takes effect in 2027-28 will cap the amount any university athletic department can receive at a maximum of $5.8 million
- The events incentives fund will receive a maximum of $30 million annually
- 100% of remaining proceeds — instead of 50% — will go to the general fund
Read the full story on CBJ’s website here.